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The labour market effects of globalization in Kenya

Author

Listed:
  • Damiano Kulundu Manda

    (The Kenya Institute for Public Policy Research and Analysis (KIPPRA), Nairobi, Kenya)

  • Kunal Sen

    (School of Development Studies, University of East Anglia, Norwich, UK)

Abstract

Since the 1980s, Kenya has been gradually integrating with the global economy. Using both industry-level and firm-level data, the paper examines the effects of globalization on employment and earnings in the Kenyan manufacturing sector. The industry-level analysis suggests that the overall effect of international trade on manufacturing employment has been negative in the 1990s. The firm-level analysis indicates that less skilled workers experienced losses in earnings, and that the inequality in earnings between skilled and unskilled workers increased during this period. This suggests that globalization has been associated with adverse labour market outcomes in Kenya. Copyright © 2004 John Wiley & Sons, Ltd.

Suggested Citation

  • Damiano Kulundu Manda & Kunal Sen, 2004. "The labour market effects of globalization in Kenya," Journal of International Development, John Wiley & Sons, Ltd., vol. 16(1), pages 29-43.
    • Handle: RePEc:wly:jintdv:v:16:y:2004:i:1:p:29-43
    DOI: 10.1002/jid.1061
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    References listed on IDEAS

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    1. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
    2. Hine, Robert C & Wright, Peter W, 1998. "Trade with Low Wage Economies, Employment and Productivity in UK Manufacturing," Economic Journal, Royal Economic Society, vol. 108(450), pages 1500-1510, September.
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    Cited by:

    1. Branko Milanovic & Lyn Squire, 2007. "Does Tariff Liberalization Increase Wage Inequality? Some Empirical Evidence," NBER Chapters, in: Globalization and Poverty, pages 143-182, National Bureau of Economic Research, Inc.
    2. Bigsten, Arne & Durevall, Dick, 2006. "Openness and wage inequality in Kenya, 1964-2000," World Development, Elsevier, vol. 34(3), pages 465-480, March.
    3. Novella Bottini & Michael Gasiorek, 2009. "Trade and Job Reallocation: Evidence for Morocco," Working Papers 492, Economic Research Forum, revised Jun 2009.
    4. Pankaj C. Patel & Cornelius A. Rietveld, 2022. "Does globalization affect perceptions about entrepreneurship? The role of economic development," Small Business Economics, Springer, vol. 58(3), pages 1545-1562, March.
    5. Martin Mulwa & Timothy Gichana, 2020. "Does education reduce gender differentials in labor market participation? A Kenyan perspective," African Development Review, African Development Bank, vol. 32(3), pages 446-458, September.
    6. Wambui R. Wamuthenya, 2010. "Determinants of Employment in the Formal and Informal Sectors of the Urban Areas of Kenya," Working Papers 194, African Economic Research Consortium, Research Department.
    7. Robert Pollin & James Heintz, 2017. "Expanding Decent Employment in Kenya: The Role of Monetary Policy, Inflation Control, and the Exchange Rate," Research Report 6, International Policy Centre for Inclusive Growth.
    8. Rhys Jenkins, 2005. "Globalization, Production and Poverty," WIDER Working Paper Series RP2005-40, World Institute for Development Economic Research (UNU-WIDER).
    9. Rhys Jenkins, 2006. "Contrasting perspectives on globalization and labour in South Africa," Progress in Development Studies, , vol. 6(3), pages 185-200, July.
    10. Xavier Cirera & Dirk Willenbockel & Rajith W.D. Lakshman, 2014. "Evidence On The Impact Of Tariff Reductions On Employment In Developing Countries: A Systematic Review," Journal of Economic Surveys, Wiley Blackwell, vol. 28(3), pages 449-471, July.
    11. Bigsten, Arne & Durevall, Dick, 2004. "Trade Reform and Wage Inequality in Kenya, 1964-2000," Working Papers in Economics 148, University of Gothenburg, Department of Economics.

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