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  • Title: Wage differentials in Jordan: effects on integrated labour market.
    Author: Share MA.
    Journal: Popul Bull ESCWA; 1987 Jun; (30):51-68. PubMed ID: 12281012.
    Abstract:
    The emigration of Jordanian workers has benefited the country by reducing the scale of unemployment that existed in the 1960s and early 1970s. In addition, workers' remittances have had a favorable effect on the Jordanian balance of payments and contributed to increases in wage rates and demands for labor. Any shortages of labor resulting from the emigration flow appear to have been offset by the importation of workers from neighboring countries. A sample survey encompassing 495 foreign workers in Jordan and 518 Jordanian workers indicates that immigrant workers' wages are below those of Jordanian workers and considerably below the wages that Jordanian workers earn abroad. The average monthly wage for the Jordanians in the sample was JD 193.03 compared to JD 132.93 for the immigrants--a 45% difference. Over half of the immigrants surveyed earned under JD 99/month, while only 26% of the Jordanian workers were in this low income category. In part this wage differential is caused by the high proportions of immigrant workers employed in the clerical and unskilled occupational groups, where they are paid only half the wages earned by Jordanians engaged in the same occupations. A similar differential was observed in the average amount of monthly remittances to home countries: in 1982, Jordanians working abroad remitted an average of JD 77.5/worker compared with JD 59/worker remitted by foreign workers employed in Jordan. On balance, it appears that Jordan is a net gainer from the process of labor import and export.
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