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Wages and Unemployment in an Urban African Labour Market

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  • Hoddinott, John

Abstract

This paper argues that urban labor markets in Africa exhibit a wage curve similar to those found in the United States, Britain, Canada and other developed countries. Drawing on data from the Ivory Coast, the author finds that urban wages are depressed by higher levels of unemployment. This result is robust to changes in model specification and level of aggregation. It is consistent with the model of wage determination developed by C. Shapiro and J. Stiglitz (1984) and D. Blanchflower and A. Oswald (1995) but not with claims that urban wages are invariant to unemployment. Copyright 1996 by Royal Economic Society.

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  • Hoddinott, John, 1996. "Wages and Unemployment in an Urban African Labour Market," Economic Journal, Royal Economic Society, vol. 106(439), pages 1610-1626, November.
    • Handle: RePEc:ecj:econjl:v:106:y:1996:i:439:p:1610-26
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