Are Skills Rewarded in Sub-Saharan Africa? Determinants of Wages and Productivity in the Manufacturing Sector
Using recent matched employer-employee data from the manufacturing sector in 20 Sub-Saharan African countries, the authors analyze how the supply of skills and legal origin of the country affect the wage setting process. The wage analysis yields th...
| Main Authors: | , |
|---|---|
| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2012
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2008/08/9755051/skills-rewarded-sub-saharan-africa-determinants-wages-productivity-manufacturing-sector http://hdl.handle.net/10986/6811 |
| id |
okr-10986-6811 |
|---|---|
| recordtype |
oai_dc |
| spelling |
okr-10986-68112021-04-23T14:02:32Z Are Skills Rewarded in Sub-Saharan Africa? Determinants of Wages and Productivity in the Manufacturing Sector Fox, Louise Oviedo, Ana Maria ACCESS TO CREDIT ACCESS TO EDUCATION ACCOUNTING ACCURATE ESTIMATES AGE CATEGORIES AGE GROUP AGE GROUPS AGE-EARNINGS AGE-EARNINGS PROFILES ANNUAL LABOR COST ANNUAL WAGE ANNUAL WAGES ASSESSING LABOR MARKET AVERAGE EDUCATION LEVEL BANKRUPTCY BARGAINING BARGAINING POWER BRAIN DRAIN CALCULATION CALCULATIONS CONTRACT ENFORCEMENT CONTRIBUTION COST OF LABOR COST OF LIVING COUNTRY COMPARISONS CURRENCY UNITS EARLY RETIREMENT EARNINGS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC MANAGEMENT EDUCATIONAL ATTAINMENT EDUCATIONAL DISTRIBUTION EFFICIENCY WAGES EMPLOYEE EMPLOYMENT EMPLOYMENT GROWTH EXCHANGE RATE EXCHANGE RATES FEMALE WORKER FEMALE WORKERS FIRING COSTS FIRM LEVEL FIRM PERFORMANCE FIRM SIZE FIRM SURVEY FIRM SURVEYS FOREIGN INVESTMENT FOREIGN OWNERSHIP FOREIGN WORKERS HIGH WAGE HOUSEHOLD SURVEY HOUSEHOLD SURVEYS HUMAN CAPITAL HUMAN RESOURCES INCOME INDUSTRY WAGE INVESTMENT CLIMATE JOB SECURITY LABOR COSTS LABOR ECONOMICS LABOR FORCE LABOR MANAGEMENT LABOR MARKET LABOR MARKET CONDITIONS LABOR MARKET OUTCOMES LABOR MARKET POLICY LABOR MARKET RIGIDITY LABOR MARKETS LABOR REGULATION LABOR REGULATIONS LABOR RELATIONS LABOR SUPPLY LABOUR LABOUR STATISTICS LARGE FIRM LARGE FIRMS LATIN AMERICAN LEATHER INDUSTRY LIVING COSTS LOCAL CURRENCY MIDDLE EAST MINIMUM WAGES MOTIVATION NOMINAL WAGES NORTH AFRICA OCCUPATION OCCUPATIONS OLDER WORKERS PAID WORKERS PERMANENT WORKERS POLITICAL ECONOMY PREVIOUS SECTION PRIMARY EDUCATION PRIVATE SECTOR PRODUCT MARKET PRODUCTION FUNCTION PRODUCTION WORKER PRODUCTION WORKERS PRODUCTIVITIES PRODUCTIVITY PRODUCTIVITY LEVEL PUBLIC PENSIONS PUBLIC SERVICE QUESTIONNAIRE RATES OF RETURN REGRESSION ANALYSIS RENTS SALARIES SALES SECONDARY EDUCATION SECONDARY SCHOOL SENIOR SEVERANCE PAY SEVERANCE PAYMENTS SKILL SHORTAGE SKILL SHORTAGES SKILLED LABOR STOCKS SUB-SAHARAN AFRICA TAXATION TEACHERS TEMPORARY WORKERS TOTAL EMPLOYMENT TOTAL WORKER TRADE UNION UNION DENSITY UNION MEMBERSHIP UNION MEMBERSHIP RATES UNIVERSAL PRIMARY EDUCATION UNSKILLED WORKER UNSKILLED WORKERS VALUABLE VOCATIONAL TRAINING WAGE BILL WAGE DETERMINATION WAGE EFFECT WAGE GAPS WAGE INCREASE WAGE PREMIUM WAGE STRUCTURE WORKER WORTH YOUNG WORKERS YOUNGER WORKERS Using recent matched employer-employee data from the manufacturing sector in 20 Sub-Saharan African countries, the authors analyze how the supply of skills and legal origin of the country affect the wage setting process. The wage analysis yields three main findings. First, increasing returns to education, especially for older workers, suggest that the expansion of education in Africa has reduced returns to education for entrants in the labor market. Second, age effects matter not just for returns to education, but also for the wage setting process more generally. In particular, in civil-law countries, returns to seniority are rewarded only after a certain age. Third, workers exercise some power in the wage setting process but their influence varies by linguistic group. In common-law countries, union presence benefits all workers equally, not just members, whereas in civil-law countries, only older members enjoy higher wages. The authors also contrast wage premia with relative marginal productivities for different age, occupation, and education categories. The findings show that in general, older, highly educated, and highly ranked workers receive wage premia that do not reflect a higher relative marginal productivity. 2012-05-31T21:25:17Z 2012-05-31T21:25:17Z 2008-08 http://documents.worldbank.org/curated/en/2008/08/9755051/skills-rewarded-sub-saharan-africa-determinants-wages-productivity-manufacturing-sector http://hdl.handle.net/10986/6811 English Policy Research Working Paper No. 4688 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCESS TO CREDIT ACCESS TO EDUCATION ACCOUNTING ACCURATE ESTIMATES AGE CATEGORIES AGE GROUP AGE GROUPS AGE-EARNINGS AGE-EARNINGS PROFILES ANNUAL LABOR COST ANNUAL WAGE ANNUAL WAGES ASSESSING LABOR MARKET AVERAGE EDUCATION LEVEL BANKRUPTCY BARGAINING BARGAINING POWER BRAIN DRAIN CALCULATION CALCULATIONS CONTRACT ENFORCEMENT CONTRIBUTION COST OF LABOR COST OF LIVING COUNTRY COMPARISONS CURRENCY UNITS EARLY RETIREMENT EARNINGS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC MANAGEMENT EDUCATIONAL ATTAINMENT EDUCATIONAL DISTRIBUTION EFFICIENCY WAGES EMPLOYEE EMPLOYMENT EMPLOYMENT GROWTH EXCHANGE RATE EXCHANGE RATES FEMALE WORKER FEMALE WORKERS FIRING COSTS FIRM LEVEL FIRM PERFORMANCE FIRM SIZE FIRM SURVEY FIRM SURVEYS FOREIGN INVESTMENT FOREIGN OWNERSHIP FOREIGN WORKERS HIGH WAGE HOUSEHOLD SURVEY HOUSEHOLD SURVEYS HUMAN CAPITAL HUMAN RESOURCES INCOME INDUSTRY WAGE INVESTMENT CLIMATE JOB SECURITY LABOR COSTS LABOR ECONOMICS LABOR FORCE LABOR MANAGEMENT LABOR MARKET LABOR MARKET CONDITIONS LABOR MARKET OUTCOMES LABOR MARKET POLICY LABOR MARKET RIGIDITY LABOR MARKETS LABOR REGULATION LABOR REGULATIONS LABOR RELATIONS LABOR SUPPLY LABOUR LABOUR STATISTICS LARGE FIRM LARGE FIRMS LATIN AMERICAN LEATHER INDUSTRY LIVING COSTS LOCAL CURRENCY MIDDLE EAST MINIMUM WAGES MOTIVATION NOMINAL WAGES NORTH AFRICA OCCUPATION OCCUPATIONS OLDER WORKERS PAID WORKERS PERMANENT WORKERS POLITICAL ECONOMY PREVIOUS SECTION PRIMARY EDUCATION PRIVATE SECTOR PRODUCT MARKET PRODUCTION FUNCTION PRODUCTION WORKER PRODUCTION WORKERS PRODUCTIVITIES PRODUCTIVITY PRODUCTIVITY LEVEL PUBLIC PENSIONS PUBLIC SERVICE QUESTIONNAIRE RATES OF RETURN REGRESSION ANALYSIS RENTS SALARIES SALES SECONDARY EDUCATION SECONDARY SCHOOL SENIOR SEVERANCE PAY SEVERANCE PAYMENTS SKILL SHORTAGE SKILL SHORTAGES SKILLED LABOR STOCKS SUB-SAHARAN AFRICA TAXATION TEACHERS TEMPORARY WORKERS TOTAL EMPLOYMENT TOTAL WORKER TRADE UNION UNION DENSITY UNION MEMBERSHIP UNION MEMBERSHIP RATES UNIVERSAL PRIMARY EDUCATION UNSKILLED WORKER UNSKILLED WORKERS VALUABLE VOCATIONAL TRAINING WAGE BILL WAGE DETERMINATION WAGE EFFECT WAGE GAPS WAGE INCREASE WAGE PREMIUM WAGE STRUCTURE WORKER WORTH YOUNG WORKERS YOUNGER WORKERS |
| spellingShingle |
ACCESS TO CREDIT ACCESS TO EDUCATION ACCOUNTING ACCURATE ESTIMATES AGE CATEGORIES AGE GROUP AGE GROUPS AGE-EARNINGS AGE-EARNINGS PROFILES ANNUAL LABOR COST ANNUAL WAGE ANNUAL WAGES ASSESSING LABOR MARKET AVERAGE EDUCATION LEVEL BANKRUPTCY BARGAINING BARGAINING POWER BRAIN DRAIN CALCULATION CALCULATIONS CONTRACT ENFORCEMENT CONTRIBUTION COST OF LABOR COST OF LIVING COUNTRY COMPARISONS CURRENCY UNITS EARLY RETIREMENT EARNINGS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC MANAGEMENT EDUCATIONAL ATTAINMENT EDUCATIONAL DISTRIBUTION EFFICIENCY WAGES EMPLOYEE EMPLOYMENT EMPLOYMENT GROWTH EXCHANGE RATE EXCHANGE RATES FEMALE WORKER FEMALE WORKERS FIRING COSTS FIRM LEVEL FIRM PERFORMANCE FIRM SIZE FIRM SURVEY FIRM SURVEYS FOREIGN INVESTMENT FOREIGN OWNERSHIP FOREIGN WORKERS HIGH WAGE HOUSEHOLD SURVEY HOUSEHOLD SURVEYS HUMAN CAPITAL HUMAN RESOURCES INCOME INDUSTRY WAGE INVESTMENT CLIMATE JOB SECURITY LABOR COSTS LABOR ECONOMICS LABOR FORCE LABOR MANAGEMENT LABOR MARKET LABOR MARKET CONDITIONS LABOR MARKET OUTCOMES LABOR MARKET POLICY LABOR MARKET RIGIDITY LABOR MARKETS LABOR REGULATION LABOR REGULATIONS LABOR RELATIONS LABOR SUPPLY LABOUR LABOUR STATISTICS LARGE FIRM LARGE FIRMS LATIN AMERICAN LEATHER INDUSTRY LIVING COSTS LOCAL CURRENCY MIDDLE EAST MINIMUM WAGES MOTIVATION NOMINAL WAGES NORTH AFRICA OCCUPATION OCCUPATIONS OLDER WORKERS PAID WORKERS PERMANENT WORKERS POLITICAL ECONOMY PREVIOUS SECTION PRIMARY EDUCATION PRIVATE SECTOR PRODUCT MARKET PRODUCTION FUNCTION PRODUCTION WORKER PRODUCTION WORKERS PRODUCTIVITIES PRODUCTIVITY PRODUCTIVITY LEVEL PUBLIC PENSIONS PUBLIC SERVICE QUESTIONNAIRE RATES OF RETURN REGRESSION ANALYSIS RENTS SALARIES SALES SECONDARY EDUCATION SECONDARY SCHOOL SENIOR SEVERANCE PAY SEVERANCE PAYMENTS SKILL SHORTAGE SKILL SHORTAGES SKILLED LABOR STOCKS SUB-SAHARAN AFRICA TAXATION TEACHERS TEMPORARY WORKERS TOTAL EMPLOYMENT TOTAL WORKER TRADE UNION UNION DENSITY UNION MEMBERSHIP UNION MEMBERSHIP RATES UNIVERSAL PRIMARY EDUCATION UNSKILLED WORKER UNSKILLED WORKERS VALUABLE VOCATIONAL TRAINING WAGE BILL WAGE DETERMINATION WAGE EFFECT WAGE GAPS WAGE INCREASE WAGE PREMIUM WAGE STRUCTURE WORKER WORTH YOUNG WORKERS YOUNGER WORKERS Fox, Louise Oviedo, Ana Maria Are Skills Rewarded in Sub-Saharan Africa? Determinants of Wages and Productivity in the Manufacturing Sector |
| relation |
Policy Research Working Paper No. 4688 |
| description |
Using recent matched employer-employee
data from the manufacturing sector in 20 Sub-Saharan African
countries, the authors analyze how the supply of skills and
legal origin of the country affect the wage setting process.
The wage analysis yields three main findings. First,
increasing returns to education, especially for older
workers, suggest that the expansion of education in Africa
has reduced returns to education for entrants in the labor
market. Second, age effects matter not just for returns to
education, but also for the wage setting process more
generally. In particular, in civil-law countries, returns to
seniority are rewarded only after a certain age. Third,
workers exercise some power in the wage setting process but
their influence varies by linguistic group. In common-law
countries, union presence benefits all workers equally, not
just members, whereas in civil-law countries, only older
members enjoy higher wages. The authors also contrast wage
premia with relative marginal productivities for different
age, occupation, and education categories. The findings show
that in general, older, highly educated, and highly ranked
workers receive wage premia that do not reflect a higher
relative marginal productivity. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Fox, Louise Oviedo, Ana Maria |
| author_facet |
Fox, Louise Oviedo, Ana Maria |
| author_sort |
Fox, Louise |
| title |
Are Skills Rewarded in Sub-Saharan Africa? Determinants of Wages and Productivity in the Manufacturing Sector |
| title_short |
Are Skills Rewarded in Sub-Saharan Africa? Determinants of Wages and Productivity in the Manufacturing Sector |
| title_full |
Are Skills Rewarded in Sub-Saharan Africa? Determinants of Wages and Productivity in the Manufacturing Sector |
| title_fullStr |
Are Skills Rewarded in Sub-Saharan Africa? Determinants of Wages and Productivity in the Manufacturing Sector |
| title_full_unstemmed |
Are Skills Rewarded in Sub-Saharan Africa? Determinants of Wages and Productivity in the Manufacturing Sector |
| title_sort |
are skills rewarded in sub-saharan africa? determinants of wages and productivity in the manufacturing sector |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2008/08/9755051/skills-rewarded-sub-saharan-africa-determinants-wages-productivity-manufacturing-sector http://hdl.handle.net/10986/6811 |
| _version_ |
1764401133988610048 |