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Wage Gaps and Job Sorting in African Manufacturing

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  • Benhassine, Najy
  • Fafchamps, Marcel
  • Söderbom, Måns

Abstract

Using matched employer-employee data from eleven African countries, we investigate if there is job sorting in African labor markets. We find that much of the wage gap correlated with education is driven by selection across occupations and firms. This is consistent with educated workers being more effective at complex tasks like labor management. In all countries the education wage gap widens rapidly at high low levels of education. Most of the education wage gap at low levels of education can be explained by selection across occupations. We also find that the education wage gap tends to be higher for women, except in Morocco where many poorly educated women work in the export garment sector. A large proportion of the gender wage gap is explained by selection into low wage occupations and firms.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 6003.

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Date of creation: Dec 2006
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Handle: RePEc:cpr:ceprdp:6003

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Keywords: Africa; gender wage gap; job selection; manufacturing; return to education;

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Cited by:
  1. Raymond P. Guiteras & B. Kelsey Jack, 2014. "Incentives, Selection and Productivity in Labor Markets: Evidence from Rural Malawi," NBER Working Papers 19825, National Bureau of Economic Research, Inc.
  2. Paolo Falco & William F. Maloney & Bob Rijkers & Mauricio Sarrias, 2010. "Heterogeneity in Subjective Wellbeing: An Application to Occupational Allocation in Africa," DOCUMENTOS CEDE 010494, UNIVERSIDAD DE LOS ANDES-CEDE.
  3. Sarra Ben Yahmed, 2012. "Gender Wage Gaps across Skills and Trade Openness," Working Papers halshs-00793559, HAL.
  4. Hallward-Driemeier, Mary & Hasan, Tazeen & Rusu, Anca Bogdana, 2013. "Women's legal rights over 50 years : what is the impact of reform ?," Policy Research Working Paper Series 6617, The World Bank.
  5. 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.
  6. Chicha, Marie-Thérèse, 2013. "Inégalités de genre et pratiques d'entreprise au Maroc," ILO Working Papers 482133, International Labour Organization.
  7. 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.

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