How efficient are labor markets in sub-Saharan Africa?
نویسنده
چکیده
Using a matched employer-employee data set of manufacturing plants in three sub-Saharan countries, I compare the marginal productivity of different categories of workers with the wages they earn. If labor markets are efficient, the wage premiums associated with worker characteristics should equal the productivity benefits they bring. I find that equality holds strongly for the most developed country in the sample (Zimbabwe), but not at all for the least developed country (Tanzania). Differences between wage and productivity premiums are most pronounced for characteristics that with a large impact on human capital, such as schooling, training, and tenure. ∗Department of Economics, University of Toronto, 150 St. George Street, Toronto, ON M5S 3G7, Canada, [email protected]. Funding by the Connaught Foundation is gratefully acknowledged.
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