PI-5-4 
Figure 1: General Framework of the Research 
W r : Rural wage. 
Ap: Agriculture productivity 
S p : Land productivity 
S f ,: Soil fertility. 
Figure 2 shows how the soil fertility and land 
productivity influence the wage rate and the income 
of the agrarian society. In the initial condition, at the 
wage Wj, the land up to ^ will be cultivated where 
the land rent will be w^pl. When the soil fertility 
goes down, productivity drops from pi to p2 and land 
with fertility of r 2 will be cultivated at wage Wj where 
land rent will drop to Wja 2 p2. This will induce the 
decline in the wage rate at w 2 and resulted in to the 
over supply of labor. The migration of the labor to 
the urban sector is unavoidable here and this 
movement may create shortage of labor. Finally the 
wage will be stabilized at W* with the cultivation of 
land up to r 4 . While considering the period of time, 
this phenomenon may be avoided by bringing the 
more forestland under agriculture for time being, but 
it is accepted fact that these resources are limited. 
Land types 
Figure 2: Conceptual Wage, Soil Fertility & Productivity