Irrigation Development and Agricultural Wages

Irrigation impacts agricultural wage trends through increased demand for labour, cropping intensity and shift in the cropping pattern from low value crops to high value crops. An attempt is made here to explore the relationship between irrigation development and wage rate of agricultural labourers using statewise cross section data pertaining to five points of time: 1972-73, 1977-78, 1983, 1987-88 and 1993-94. The results of the study show that there is a positive impact of availability of irrigation on real wages of agricultural labourers. Also irrigation helps to narrow down the difference between the statutory minimum wages and prevailing wage rates. The gender wage differential is found to be narrowing at a faster rate in the states where irrigation is highe