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

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  • Francis Teal

Abstract

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.

Suggested Citation

  • Francis Teal, 1997. "Real wages and the demand for skilled and unskilled male labour in Ghana's manufacturing sector: 1991-1995," CSAE Working Paper Series 1997-10, Centre for the Study of African Economies, University of Oxford.
  • Handle: RePEc:csa:wpaper:1997-10
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    File URL: http://www.csae.ox.ac.uk/materials/papers/9710text.pdf
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    References listed on IDEAS

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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.
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    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, pages 330-334.
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    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, pages 371-392.
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    Citations

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    Cited by:

    1. Alberto Behar, 2004. "Estimates of labour demand elasticities and elasticities of substitution using firm-level manufacturing data," SALDRU/CSSR Working Papers 098, Southern Africa Labour and Development Research Unit, University of Cape Town.
    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. Francis Teal, 1998. "The Ghanaian manufacturing sector 1991-1995: firm growth, productivity and convergence," CSAE Working Paper Series 1998-17, Centre for the Study of African Economies, University of Oxford.
    4. James Heintz & Robert Pollin, 2008. "Targeting Employment Expansion, Economic Growth and Development in Sub-Saharan Africa: Outlines of an Alternative Economic Programme for the Region," Published Studies targeting_employment_expa, Political Economy Research Institute, University of Massachusetts at Amherst.
    5. Anderson, Edward, 2005. "Openness and inequality in developing countries: A review of theory and recent evidence," World Development, Elsevier, vol. 33(7), pages 1045-1063, July.
    6. Martin Schindler & Mariya Aleksynska, 2011. "Labor Market Regulations in Low-, Middle- and High-Income Countries; A New Panel Database," IMF Working Papers 11/154, International Monetary Fund.
    7. Marcel Fafchampsm & Måns Söderbom, 2006. "Wages and Labor Management in African Manufacturing," Journal of Human Resources, University of Wisconsin Press, vol. 41(2).
    8. Waldkirch, Andreas & Ofosu, Andra, 2010. "Foreign Presence, Spillovers, and Productivity: Evidence from Ghana," World Development, Elsevier, vol. 38(8), pages 1114-1126, August.
    9. Baptist, Simon & Teal, Francis, 2014. "Technology and Productivity in African Manufacturing Firms," World Development, Elsevier, vol. 64(C), pages 713-725.
    10. Houssa, Romain, 2008. "Monetary union in West Africa and asymmetric shocks: A dynamic structural factor model approach," Journal of Development Economics, Elsevier, pages 319-347.
    11. Akay, Gokhan H. & Yuksel, Mutlu, 2009. "Capital-Skill Complementarity: Evidence from Manufacturing Industries in Ghana," IZA Discussion Papers 4674, Institute for the Study of Labor (IZA).
    12. Houssa, Romain, 2008. "Monetary union in West Africa and asymmetric shocks: A dynamic structural factor model approach," Journal of Development Economics, Elsevier, pages 319-347.

    More about this item

    Keywords

    Labour markets; wage determination; labour demand in Ghana;

    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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