Labor Market Distortions in Cote d'Ivoire : Analyses of Employer-Employee Data from the Manufacturing Sector

This paper investigates the extent and nature of distortions in the labor market in the Republic of Cote d'Ivoire by using quantile regression analysis on employer-employee data from the manufacturing sector. We found that the labor markets in Cote d'Ivoire do not seem to be much distorted...

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Main Authors: Kristensen, Nicolai, Verner, Dorte
Format: Journal Article
Language:EN
Published: 2012
Subjects:
Online Access:http://hdl.handle.net/10986/4647
id okr-10986-4647
recordtype oai_dc
spelling okr-10986-46472021-04-23T14:02:18Z Labor Market Distortions in Cote d'Ivoire : Analyses of Employer-Employee Data from the Manufacturing Sector Kristensen, Nicolai Verner, Dorte Human Capital Skills Occupational Choice Labor Productivity J240 Wage Level and Structure Wage Differentials J310 Trade Unions: Objectives, Structure, and Effects J510 Industry Studies: Manufacturing: General L600 Industrialization Manufacturing and Service Industries Choice of Technology O140 Economic Development: Human Resources Human Development Income Distribution Migration O150 This paper investigates the extent and nature of distortions in the labor market in the Republic of Cote d'Ivoire by using quantile regression analysis on employer-employee data from the manufacturing sector. We found that the labor markets in Cote d'Ivoire do not seem to be much distorted. Unions may influence employment through tenure but do not seem to influence wages directly except for vulnerable minorities that seem protected by unions. Establishment-size wage effects are pronounced and highest for white-collar workers. This may be explained by the efficiency wage theory, so that, even in the absence of unions, segmentation and inefficiencies will still be present as long as firms seek to retain their employees by paying wages above the market clearing level. The inefficiency arising from establishment-size wage effects can be mitigated by education. Furthermore, the premium to education is found highly significantly positive only for higher education, and not for basic education, indicating that educational policies should also focus on higher education. 2012-03-30T07:29:01Z 2012-03-30T07:29:01Z 2008 Journal Article African Development Review/Revue Africaine de Developpement 10176772 http://hdl.handle.net/10986/4647 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article Cote d'Ivoire
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language EN
topic Human Capital
Skills
Occupational Choice
Labor Productivity J240
Wage Level and Structure
Wage Differentials J310
Trade Unions: Objectives, Structure, and Effects J510
Industry Studies: Manufacturing: General L600
Industrialization
Manufacturing and Service Industries
Choice of Technology O140
Economic Development: Human Resources
Human Development
Income Distribution
Migration O150
spellingShingle Human Capital
Skills
Occupational Choice
Labor Productivity J240
Wage Level and Structure
Wage Differentials J310
Trade Unions: Objectives, Structure, and Effects J510
Industry Studies: Manufacturing: General L600
Industrialization
Manufacturing and Service Industries
Choice of Technology O140
Economic Development: Human Resources
Human Development
Income Distribution
Migration O150
Kristensen, Nicolai
Verner, Dorte
Labor Market Distortions in Cote d'Ivoire : Analyses of Employer-Employee Data from the Manufacturing Sector
geographic_facet Cote d'Ivoire
relation http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description This paper investigates the extent and nature of distortions in the labor market in the Republic of Cote d'Ivoire by using quantile regression analysis on employer-employee data from the manufacturing sector. We found that the labor markets in Cote d'Ivoire do not seem to be much distorted. Unions may influence employment through tenure but do not seem to influence wages directly except for vulnerable minorities that seem protected by unions. Establishment-size wage effects are pronounced and highest for white-collar workers. This may be explained by the efficiency wage theory, so that, even in the absence of unions, segmentation and inefficiencies will still be present as long as firms seek to retain their employees by paying wages above the market clearing level. The inefficiency arising from establishment-size wage effects can be mitigated by education. Furthermore, the premium to education is found highly significantly positive only for higher education, and not for basic education, indicating that educational policies should also focus on higher education.
format Journal Article
author Kristensen, Nicolai
Verner, Dorte
author_facet Kristensen, Nicolai
Verner, Dorte
author_sort Kristensen, Nicolai
title Labor Market Distortions in Cote d'Ivoire : Analyses of Employer-Employee Data from the Manufacturing Sector
title_short Labor Market Distortions in Cote d'Ivoire : Analyses of Employer-Employee Data from the Manufacturing Sector
title_full Labor Market Distortions in Cote d'Ivoire : Analyses of Employer-Employee Data from the Manufacturing Sector
title_fullStr Labor Market Distortions in Cote d'Ivoire : Analyses of Employer-Employee Data from the Manufacturing Sector
title_full_unstemmed Labor Market Distortions in Cote d'Ivoire : Analyses of Employer-Employee Data from the Manufacturing Sector
title_sort labor market distortions in cote d'ivoire : analyses of employer-employee data from the manufacturing sector
publishDate 2012
url http://hdl.handle.net/10986/4647
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