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Wages and Labor Management in African Manufacturing

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Author Info
Marcel Fafchampsm
Måns Söderbom

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Abstract

Using matched employer-employee data from ten African countries, we examine the relationship between wages, worker supervision, and labor productivity in manufacturing. Wages increase with firm size for both production workers and supervisors. We develop a two-tier model of supervision that can account for this stylized fact and we fit the structural model to the data. We find a strong effect of both supervision and wages on effort and hence on labor productivity. Labor management in sub-Saharan Africa appears problematic, with much higher supervisor-to-worker ratios than elsewhere and a higher elasticity of effort with respect to supervision than in Morocco.

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Publisher Info
Article provided by University of Wisconsin Press in its journal Journal of Human Resources.

Volume (Year): 41 (2006)
Issue (Month): 2 ()
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Handle: RePEc:uwp:jhriss:v:41:y:2006:i:2:p356-379

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    • Arne Bigsten & Paul Collier & Stefan Dercon & Marcel Fafchamps & Bernard Gauthier & Jan Willem Gunning & Abena Oduro & Remco Oostendorp & Cathy Pattillo & Mans S–derbom & Francis Teal & Albert Zeufa, 2003. "Risk Sharing in Labor Markets," World Bank Economic Review, Oxford University Press, vol. 17(3), pages 349-366, December.
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  20. Bigsten, Arne, et al, 2000. "Rates of Return on Physical and Human Capital in Africa's Manufacturing Sector," Economic Development and Cultural Change, University of Chicago Press, vol. 48(4), pages 801-27, July.
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  21. Bigsten, A. & Collier, P. & Fafchamps, M. & Dercon, S. & Gauthier, B. & Gunning, J.W. & Oduro, A. & OOstendorp, R. & Patillo, C. & Sederbom, M. & Teal, F. & Zeufack, A., 1999. "Contract Flexibility and Dispute Resolution in African Manufacturing," Working Papers Series 99-20, Centre for the Study of African Economies, University of Oxford.
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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Arjun Jayadev & Samuel Bowles, 2004. "Guard Labor: An Essay in Honor of Pranab Bardhan," Working Papers wp90, Political Economy Research Institute, University of Massachusetts at Amherst. [Downloadable!]
    Other versions:
  2. Perroni, Carlo & Proto, Eugenio, 2007. "Moral Hazard and Entrepreneurial Failure in a Two-sector Model of Productive Matching - with an Application to the Natural Resource Curse," The Warwick Economics Research Paper Series (TWERPS) 796, University of Warwick, Department of Economics. [Downloadable!]
  3. Christophe Muller & Christophe Nordman, . "Task Organization, Human Capital and Wages in Moroccan Exporting Firms," Discussion Papers 08/12, University of Nottingham, CREDIT. [Downloadable!]
    Other versions:
  4. Bigsten, Arne & Soderbom, Mans, 2005. "What have we learned from a decade of manufacturing enterprise surveys in Africa ?," Policy Research Working Paper Series 3798, The World Bank. [Downloadable!]
    Other versions:
  5. Benhassine, Najy & Fafchamps, Marcel & Söderbom, Måns, 2006. "Wage Gaps and Job Sorting in African Manufacturing," CEPR Discussion Papers 6003, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  6. Takashi Kurosaki, 2006. "Labor Contracts, Incentives, and Food Security in Rural Myanmar," Hi-Stat Discussion Paper Series d05-134, Institute of Economic Research, Hitotsubashi University. [Downloadable!]
  7. Christophe Muller & Christophe Nordman, 2005. "Wage And Human Capital In Exporting Firms In Morocco," Working Papers. Serie AD 2005-14, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie). [Downloadable!]
    Other versions:
  8. Paul Beaudry & Patrick Francois, 2005. "Managerial Skill Acquisition and the Theory of Economic Development," NBER Working Papers 11451, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  9. Fox, Louise & Oviedo, Ana Maria, 2008. "Are skills rewarded in Sub-Saharan Africa ? determinants of wages and productivity in the manufacturing sector," Policy Research Working Paper Series 4688, The World Bank. [Downloadable!]
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