Question

Why wage rates of all types of labor are lower in India and Pakistan than Saudi Arabia?

Answer 1

Wage rates of all type of labour are lower in India and Pakistan then Saudi Arabia because India and Pakistan are are both developing Nations where as Saudi Arabia is developed nation in today's era. In India and Pakistan population explosion has steadily increased through the years. During the past 45 years it has risen very high. About 17 million people are added to the countries population each year this also increases the demand for consumption goods tremendously. Because of growing population in which countries job opportunities are very low.

Both India and Pakistan have low agricultural productivity In the agricultural sector. The reason of low productivity is manifold. Because of high population fragmented and subdivided land holdings lack of capital illiteracy about new technologies in farming the use of traditional method of cultivation and wastage during Store the poverty increases in these Nations. And because of that peoples get more poor day by day and because of that day ready to work on what ever wages they get for work.
In what country is unemployment is factor cause lower wages for works.the ever increasing population has led to a higher number of job seekers. However there is not enough expansion in opportunities to match this demand for jobs.

in India and Pakistan there are lack of capital and entrepreneurship that results in low level of investment and job creation in the economy.
apart from economic factor there also social factor hindering the eradication of poverty in in Pakistan and India. Some of the the hindrances in the regard are the laws of inheritance, caste system ,certain traditions etc.
Colonial exploitation in India and Pakistan the British colonization and rule over India and Pakistan deindustrialised both countries buy ruining their traditional handicrafts and textile industries. And because of these these countries get poor day by day and they can't get or create their own jobs on high level which provide jobs to their growing population.

Where as is in Saudi Arabia standard of living is very high and they have rich resources of crude oil and service sectors because of that they could provide job opportunity to do the citizen of various countries. And higher salary or wages compared with other countries like Pakistan and India.