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Trade Reform and Wage Inequality in Kenya, 1964-2000

Author

Listed:
  • Bigsten, Arne

    (Department of Economics, School of Economics and Commercial Law, Göteborg University)

  • Durevall, Dick

    (Department of Economics, School of Economics and Commercial Law, Göteborg University)

Abstract

This paper analyses the evolution of wage inequality in Kenya between 1964 and 2000. Our measure of wage inequality is the ratio of wages in manufacturing to wages in agriculture, which can be seen as an indicator of sectoral wage-inequality or as a proxy for skilled to unskilled wages. We find that changes in relative wages have primarily been driven by the degree of openness, while other factors such as the capital-labour ratio, educational attainment, relative labour-productivity, and the ratio between agricultural and manufacturing prices had no significant effect. We conclude that international market integration has reduced wage-inequality in Kenya.

Suggested Citation

  • Bigsten, Arne & Durevall, Dick, 2004. "Trade Reform and Wage Inequality in Kenya, 1964-2000," Working Papers in Economics 148, University of Gothenburg, Department of Economics.
    • Handle: RePEc:hhs:gunwpe:0148
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    File URL: http://hdl.handle.net/2077/2788
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    References listed on IDEAS

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    More about this item

    Keywords

    Trade policy; globalisation; wage inequality; Kenya.;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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