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Real wages and the demand for skilled and unskilled male labour in Ghana's manufacturing sector: 1991-1995

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  • Teal, Francis

Abstract

Real wage rates in Ghana have fallen substantially over the last twenty years. In this paper survey data for the years 1991–1996 is used to assess whether this fall has continued in the 1990s. It is shown that the fall in average real wage rates has continued, the relative wage of skilled labour has risen, the share of skilled wages in total wages has remained constant and the share of wages in value-added has risen. Factor share equations for skilled and unskilled labour are estimated which are consistent with the rise in skilled wages leading to substitution to unskilled labour and with technical regress raising the demand for unskilled labour. Real wage income in the sample has risen over the period.
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  • Teal, Francis, 2000. "Real wages and the demand for skilled and unskilled male labour in Ghana's manufacturing sector: 1991-1995," Journal of Development Economics, Elsevier, vol. 61(2), pages 447-461, April.
    • Handle: RePEc:eee:deveco:v:61:y:2000:i:2:p:447-461
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    Cited by:

    1. Waldkirch, Andreas & Ofosu, Andra, 2010. "Foreign Presence, Spillovers, and Productivity: Evidence from Ghana," World Development, Elsevier, vol. 38(8), pages 1114-1126, August.
    2. Eric Strobl, 2004. "Do employers use education as a signal for ability in developing countries? Evidence from Ghana," Applied Economics Letters, Taylor & Francis Journals, vol. 11(4), pages 259-261.
    3. Marcel Fafchamps & Måns Söderbom, 2004. "Wages and Labor Management in African Manufacturing," Development and Comp Systems 0409043, University Library of Munich, Germany.
    4. Paul Collier & Marguerite Duponchel, 2010. "The Economic Legacy of Civil War: Firm Level Evidence from Sierra Leone," WIDER Working Paper Series wp-2010-090, World Institute for Development Economic Research (UNU-WIDER).
    5. Baptist, Simon & Teal, Francis, 2014. "Technology and Productivity in African Manufacturing Firms," World Development, Elsevier, vol. 64(C), pages 713-725.
    6. Francis Teal, 2000. "Private Sector Wages and Poverty in Ghana: 1988-1998," Economics Series Working Papers WPS/2000-06, University of Oxford, Department of Economics.
    7. Fontagné, Lionel & Limardi, Michela, 2024. "The Generalized System of Preferences and NGO activism," Journal of Development Economics, Elsevier, vol. 166(C).
    8. Alberto Behar, 2004. "Estimates of labour demand elasticities and elasticities of substitution using firm-level manufacturing data," SALDRU/CSSR Working Papers 098, Southern Africa Labour and Development Research Unit, University of Cape Town.
    9. Serneels, Pieter, 2008. "Human capital revisited: The role of experience and education when controlling for performance and cognitive skills," Labour Economics, Elsevier, vol. 15(6), pages 1143-1161, December.
    10. Hanan Nazier, 2019. "Estimating Labor Demand Elasticities and Elasticities of Substitution in Egyptian Manufacturing Sector: A Firm-Level Static Analysis," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 62(4), pages 549-575, December.
    11. Alberto Behar, 2010. "Would Cheaper Capital Replace Labour?," South African Journal of Economics, Economic Society of South Africa, vol. 78(2), pages 131-151, June.
    12. Francis Teal, 2001. "Education, incomes, poverty and inequality in Ghana in the 1990s," Economics Series Working Papers WPS/2001-21, University of Oxford, Department of Economics.
    13. Houssa, Romain, 2008. "Monetary union in West Africa and asymmetric shocks: A dynamic structural factor model approach," Journal of Development Economics, Elsevier, vol. 85(1-2), pages 319-347, February.
    14. Francis Teal, 1998. "The Ghanaian manufacturing sector 1991-1995: firm growth, productivity and convergence," CSAE Working Paper Series 1998-17, Centre for the Study of African Economies, University of Oxford.
    15. James Heintz & Robert Pollin, 2008. "Targeting Employment Expansion, Economic Growth and Development in Sub-Saharan Africa: Outlines of an Alternative Economic Programme for the Region," Published Studies targeting_employment_expa, Political Economy Research Institute, University of Massachusetts at Amherst.
    16. L Edwards & A Behar, 2006. "Trade Liberalisation and Labour Demand within South African Manufacturing Firms," Studies in Economics and Econometrics, Taylor & Francis Journals, vol. 30(2), pages 127-146, August.
    17. Francis Teal & Marcella Vigneri, 2004. "Production changes in ghana cocoa farming households under market reforms," Economics Series Working Papers WPS/2004-16, University of Oxford, Department of Economics.
    18. Anderson, Edward, 2005. "Openness and inequality in developing countries: A review of theory and recent evidence," World Development, Elsevier, vol. 33(7), pages 1045-1063, July.
    19. Mr. Martin Schindler & Ms. Mariya Aleksynska, 2011. "Labor Market Regulations in Low-, Middle- and High-Income Countries: A New Panel Database," IMF Working Papers 2011/154, International Monetary Fund.
    20. Akay, Gokhan H. & Yuksel, Mutlu, 2009. "Capital-Skill Complementarity: Evidence from Manufacturing Industries in Ghana," IZA Discussion Papers 4674, Institute of Labor Economics (IZA).
    21. Patricia Jones, 1997. "The impact of minimum wage legislation in developing countries where coverage is incomplete," Economics Series Working Papers WPS/1998-02, University of Oxford, Department of Economics.

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    More about this item

    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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