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Wage Gaps and Job Sorting in African Manufacturing

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Author Info
Benhassine, Najy
Fafchamps, Marcel
Söderbom, Måns

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

Find related papers by JEL classification:
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
O14 - Economic Development, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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