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Real wages and the demand for skilled and unskilled male labour in Ghana's manufacturing sector: 1991-1995

Listed author(s):
  • Teal, Francis

Real wage rates in Ghana have fallen substantially over the last twenty years. In this paper survey data for the years 1991–1996 is used to assess whether this fall has continued in the 1990s. It is shown that the fall in average real wage rates has continued, the relative wage of skilled labour has risen, the share of skilled wages in total wages has remained constant and the share of wages in value-added has risen. Factor share equations for skilled and unskilled labour are estimated which are consistent with the rise in skilled wages leading to substitution to unskilled labour and with technical regress raising the demand for unskilled labour. Real wage income in the sample has risen over the period.

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Article provided by Elsevier in its journal Journal of Development Economics.

Volume (Year): 61 (2000)
Issue (Month): 2 (April)
Pages: 447-461

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Handle: RePEc:eee:deveco:v:61:y:2000:i:2:p:447-461
Contact details of provider: Web page: http://www.elsevier.com/locate/devec

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  1. Levy, Victor & Newman, John L, 1989. "Wage Rigidity: Micro and Macro Evidence on Labor Market Adjustment in the Modern Sector," World Bank Economic Review, World Bank Group, vol. 3(1), pages 97-117, January.
  2. John Knight & Lina Song & Jia Huaibin, 1999. "Chinese rural migrants in urban enterprises: Three perspectives," Journal of Development Studies, Taylor & Francis Journals, vol. 35(3), pages 73-104.
  3. Brian D. Bell, "undated". "Skill-Biased Technical Change and Wages: Evidence from a Longitudinal Data Se," Economics Papers W25., Economics Group, Nuffield College, University of Oxford.
  4. Mark J. Roberts & Emmanuel Skoufias, 1997. "The Long-Run Demand for Skilled and Unskilled Labor in Colombian Manufacturing Plants," The Review of Economics and Statistics, MIT Press, vol. 79(2), pages 330-334, May.
  5. 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.
  6. Steel, W.F. & Webster, L.M., 1991. "Small enterprises under adjustment in Ghana," Papers 138, World Bank - Technical Papers.
  7. Berndt, Ernst R & Khaled, Mohammed S, 1979. "Parametric Productivity Measurement and Choice among Flexible Functional Forms," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1220-1245, December.
  8. Bound, John & Johnson, George, 1992. "Changes in the Structure of Wages in the 1980's: An Evaluation of Alternative Explanations," American Economic Review, American Economic Association, vol. 82(3), pages 371-392, June.
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