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Ethnicity and Wage Determination in Ghana

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Author Info
Barr, A.
Oduro, A.
Abstract

This paper looks at earnings differentials between (1) members of different ethnic groups and (2) employers' relatives, unrelated co-ethnics, and other workers, in the Ghanaian manufacturing sector. We find that a significant proportion of the identified earnings differentials between ethnic groups can be explained with reference to a fairly standard set of observed workers' characteristics. Labour market segregation along ethnic lines combined with considerable variation in employer characteristics (possibly due to discrimination in other markets) accounts for most of the remaining differentials. There is no evidence of statistical discrimination between ethnic groups, although there is evidence of such discrimination in favour of inexperienced co-ethnic workers, who can be more easily assessed and matched to jobs than similar workers from other ethnic groups. Finally, workers who are related to their employers earn a considerable premium, possibly because they contribute more than their fellow workers to productivity.

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Publisher Info
Paper provided by Centre for the Study of African Economies, University of Oxford in its series Working Papers Series with number 2000-9.

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Length: 32 pages
Date of creation: 2000
Date of revision:
Handle: RePEc:fth:oxesaf:2000-9

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Related research
Keywords: WAGES ; ETHNIC GROUPS ; MANUFACTURING INDUSTRIES ; DEVELOPING COUNTRIES;

Find related papers by JEL classification:
J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
J70 - Labor and Demographic Economics - - Labor Discrimination - - - General
O55 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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This page was last updated on 2009-12-16.


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