Wage Differential in an Islamic Framework

Syed, Kanwar Abbas (2006): Wage Differential in an Islamic Framework. Published in: Thoughts on Economics, The Quarterly Journal of Islamic Economics Research Bureau , Vol. 16, No. 1 (March 2006): pp. 47-53.

Abstract

The establishment of an Islamic society can itself remove many social and economic evils. Although differences between the poor and the rich generate a 'balanced economic society', they do not affect the glory of man. The departure of the Islamic economic agents from non-Islamic economic agents is due to the motivation behind economic decisions. The utility function of an Islamic employee consists of Divine will, Master pleasure, Wages and Effort level. The degree of Aman matters in worship and economic decisions and leads to wage differential in the labour market.

• Item Type: MPRA Paper
• Language: English
• Keywords: Wage Differential
• Subjects: J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs; J - Labor and Demographic Economics > J0 - General > J01 - Labor Economics: General

References

1: Ahmad Tabakoglo. "Labor and Capital Concepts", in Islamic Economics and Distribution in Macroeconomic Framework: An Islamic Perspective. edited by Fahim Khan, pr. 77-91.

2. Akerlof, George. (1982), "Labor Contracts as Partial Gift Exchange", Quarterly Journal of Economics. 97 (4), pp. 543-63.

3. Akhtar M. Ramzan. (1992), “An Islamic Framework for Employer- Employee Relationship", The American Journal of Islamic Social Sciences. 9(2), pp. 202-18.

4. Katz, Lawrence. (1986), "Efficiency Wage Theories: A Partial Evaluation", NBER Macroeconomics Annual, pp. 235-76.

5. Kruger, Allan and Summers, Lawrence. (1988), "Efficiency Wages and the Interindustry Wage Structure", Econometrica. 56(2), pp. 259-93.

6. Muhammad, Akram Khan. (1989), "Economic Teachings of Prophet Muhammad (May peace be upon Him)", International Institute of Islamic Economics Islamabad and Institute of Policy studies, Islamabad, Pakistan. - 7. S. Tahir. (1997), "Economic Teachings Prophet Muhammad (May peace be upon him)", in M.A. Choudhury, M.Z. Abdad and Muhammad S. Salleh (eds.), Islamic Political Economy in Capitalist Globalization-,Kuala Lumpur. Utusan Publications and Distributors, SDN BHD, pp. 335-77.

8. Yellen, Janet. (May, 1984),"Efficiency Wage Models of Unemployment", American Economic Review-Papers and Proceedings, 74, pp. 200-05.

9. ,Yusuf AIL (1983), The Holy Quran. Text. Translation and Commentary. Published by Amana Corp. USA.