Wages and Compensation in Ethiopia’s Industrial Parks : Evidence from a Firm Survey

Jobs in exporting industries tend to pay higher wages than comparable jobs in firms focused on the domestic market. In Ethiopia, where the government has pursued an ambitious industrialization agenda, systematic data on wages in industrial parks ha...

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Main Authors:	Meyer, Christian Johannes, Krkoska, Eduard, Maaskant, Koen
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2021
Subjects:	INDUSTRIAL PARKS WAGES AND COMPENSATION FIRM SURVEY CORONAVIRUS COVID-19 PANDEMIC IMPACT IN-KIND BENEFIT WORKER RETENTION
Online Access:	http://documents.worldbank.org/curated/en/834531617685578320/Wages-and-Compensation-in-Ethiopia-s-Industrial-Parks-Evidence-from-a-Firm-Survey http://hdl.handle.net/10986/35391

id	okr-10986-35391
recordtype	oai_dc
spelling	okr-10986-353912021-06-14T09:53:35Z Wages and Compensation in Ethiopia’s Industrial Parks : Evidence from a Firm Survey Meyer, Christian Johannes Krkoska, Eduard Maaskant, Koen INDUSTRIAL PARKS WAGES AND COMPENSATION FIRM SURVEY CORONAVIRUS COVID-19 PANDEMIC IMPACT IN-KIND BENEFIT WORKER RETENTION Jobs in exporting industries tend to pay higher wages than comparable jobs in firms focused on the domestic market. In Ethiopia, where the government has pursued an ambitious industrialization agenda, systematic data on wages in industrial parks has been scarce. This note provides an overview of worker compensation using novel firm-level data. The data shows that before the Coronavirus disease (COVID-19) pandemic, a majority of industrial park firms’ base salary exceeded the cost of basic needs as measured by the local poverty line. When bonuses, overtime pay, incentive pay, and in-kind benefits are taken into account, the median monetary value of the total compensation package is roughly fourfold of the cost of basic needs. Nevertheless, there is significant variation in pay, both within and between industrial parks with 21 percent of the surveyed firms reporting a base pay below the local poverty line. Much of the variation can be explained by the different industries in which these firms operate. Although lack of reliable data on the broader labor market makes rigorous comparisons challenging, the survey data suggests that base pay in the industrial parks is comparable with pay in the labor markets surrounding the parks. 2021-04-07T15:40:35Z 2021-04-07T15:40:35Z 2021-04 Working Paper http://documents.worldbank.org/curated/en/834531617685578320/Wages-and-Compensation-in-Ethiopia-s-Industrial-Parks-Evidence-from-a-Firm-Survey http://hdl.handle.net/10986/35391 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research :: Working Paper Publications & Research Africa Africa Eastern and Southern (AFE) Ethiopia
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	INDUSTRIAL PARKS WAGES AND COMPENSATION FIRM SURVEY CORONAVIRUS COVID-19 PANDEMIC IMPACT IN-KIND BENEFIT WORKER RETENTION
spellingShingle	INDUSTRIAL PARKS WAGES AND COMPENSATION FIRM SURVEY CORONAVIRUS COVID-19 PANDEMIC IMPACT IN-KIND BENEFIT WORKER RETENTION Meyer, Christian Johannes Krkoska, Eduard Maaskant, Koen Wages and Compensation in Ethiopia’s Industrial Parks : Evidence from a Firm Survey
geographic_facet	Africa Africa Eastern and Southern (AFE) Ethiopia
description	Jobs in exporting industries tend to pay higher wages than comparable jobs in firms focused on the domestic market. In Ethiopia, where the government has pursued an ambitious industrialization agenda, systematic data on wages in industrial parks has been scarce. This note provides an overview of worker compensation using novel firm-level data. The data shows that before the Coronavirus disease (COVID-19) pandemic, a majority of industrial park firms’ base salary exceeded the cost of basic needs as measured by the local poverty line. When bonuses, overtime pay, incentive pay, and in-kind benefits are taken into account, the median monetary value of the total compensation package is roughly fourfold of the cost of basic needs. Nevertheless, there is significant variation in pay, both within and between industrial parks with 21 percent of the surveyed firms reporting a base pay below the local poverty line. Much of the variation can be explained by the different industries in which these firms operate. Although lack of reliable data on the broader labor market makes rigorous comparisons challenging, the survey data suggests that base pay in the industrial parks is comparable with pay in the labor markets surrounding the parks.
format	Working Paper
author	Meyer, Christian Johannes Krkoska, Eduard Maaskant, Koen
author_facet	Meyer, Christian Johannes Krkoska, Eduard Maaskant, Koen
author_sort	Meyer, Christian Johannes
title	Wages and Compensation in Ethiopia’s Industrial Parks : Evidence from a Firm Survey
title_short	Wages and Compensation in Ethiopia’s Industrial Parks : Evidence from a Firm Survey
title_full	Wages and Compensation in Ethiopia’s Industrial Parks : Evidence from a Firm Survey
title_fullStr	Wages and Compensation in Ethiopia’s Industrial Parks : Evidence from a Firm Survey
title_full_unstemmed	Wages and Compensation in Ethiopia’s Industrial Parks : Evidence from a Firm Survey
title_sort	wages and compensation in ethiopia’s industrial parks : evidence from a firm survey
publisher	World Bank, Washington, DC
publishDate	2021
url	http://documents.worldbank.org/curated/en/834531617685578320/Wages-and-Compensation-in-Ethiopia-s-Industrial-Parks-Evidence-from-a-Firm-Survey http://hdl.handle.net/10986/35391
_version_	1764482935495327744

Wages and Compensation in Ethiopia’s Industrial Parks : Evidence from a Firm Survey

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