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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.

Suggested Citation

  • Benhassine, Najy & Fafchamps, Marcel & Söderbom, Måns, 2006. "Wage Gaps and Job Sorting in African Manufacturing," CEPR Discussion Papers 6003, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:6003
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    Cited by:

    1. Gundersen, Sara, 2016. "Disappointing returns to education in Ghana: A test of the robustness of OLS estimates using propensity score matching," International Journal of Educational Development, Elsevier, vol. 50(C), pages 74-89.
    2. 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.
    3. Sarra Ben Yahmed, 2012. "Gender Wage Gaps across Skills and Trade Openness," AMSE Working Papers 1232, Aix-Marseille School of Economics, Marseille, France, revised Nov 2012.
    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. Nordman, Christophe Jalil & Sarr, Leopold & Sharma, Smriti, 2015. "Cognitive, Non-Cognitive Skills and Gender Wage Gaps: Evidence from Linked Employer-Employee Data in Bangladesh," IZA Discussion Papers 9132, Institute for the Study of Labor (IZA).
    6. Falco, Paolo & Maloney, William F. & Rijkers, Bob & Sarrias, Mauricio, 2015. "Heterogeneity in subjective wellbeing: An application to occupational allocation in Africa," Journal of Economic Behavior & Organization, Elsevier, vol. 111(C), pages 137-153.
    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.
    8. Ian Coxhead & Rashesh Shrestha, 2016. "Could a Resource Export Boom Reduce Workers’ Earnings? The Labour-Market Channel in Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 52(2), pages 185-208, May.
    9. repec:ilo:ilowps:482133 is not listed on IDEAS
    10. Giulia La Mattina & Gabriel Picone & Alban Ahoure & Jose Carlos Kimou, 2017. "Female leaders and gender gaps within the firm: Evidence from three sub-Saharan African countries," WIDER Working Paper Series 063, World Institute for Development Economic Research (UNU-WIDER).
    11. repec:aia:aiaswp:140 is not listed on IDEAS
    12. Somdeep Chatterjee, 2016. "The role of the firm in worker wage dispersion: an analysis of the Ghanaian manufacturing sector," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-16, December.
    13. 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.
    14. Sarra Ben Yahmed, 2012. "Gender Wage Gaps across Skills and Trade Openness," Working Papers halshs-00793559, HAL.
    15. Chicha, Marie-Thérèse., 2013. "Inégalités de genre et pratiques d'entreprise au Maroc," ILO Working Papers 994821333402676, International Labour Organization.

    More about this item

    Keywords

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

    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, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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