Publication: Labor Market Distortions in Cote d'Ivoire : Analyses of Employer-Employee Data from the Manufacturing Sector
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Date
2008
ISSN
10176772
Published
2008
Author(s)
Kristensen, Nicolai
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Abstract
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.
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Publication Labor Market Distortions in Côte d’Ivoire : Analyses of Employer-Employee Data from the Manufacturing Sector(World Bank, Washington, DC, 2005-11)The authors investigate the extent and nature of distortions in the labor market in the Republic of Côte d'Ivoire by using quantile regression analysis on employer-employee data from the manufacturing sector. They find that the labor markets in Côte 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 authors find that the premium to education is highly significantly positive only for higher education, and not for basic education, indicating that educational policies should also focus on higher education.Publication Economic Impacts of Professional Training in the Informal Sector : The Case of the Labor Force Training Program in Côte d'Ivoire(World Bank, Washington, DC, 2005-07)The authors address the economic impact of the labor force training program (PAFPA) developed for the informal sector in Côte d'Ivoire. The data contain a subsample of the participants in the agricultural sector, tailoring sector, and the electronics sector, and a comparable control group of nonparticipants. The data have been analyzed using standard program evaluation tools, namely difference-in-difference estimators, in order to detect potential program impacts. The authors find positive economic impacts as a result of training received for some groups, namely women, the agricultural and electronics sectors, firms employing 1-3 individuals, and firms with 10 or more employees.Publication Cote d'Ivoire Economic Update, March 2015(World Bank, Abidjan, 2015-03)First in a series, which aims to analyze the recent economic and financial situation in Côte d'Ivoire, this report analyzes the main macroeconomic developments and structural policies of the country from 2013 until mid-2014. It also reflects on the underlying factors of the strong economic recovery in Côte d'Ivoire since the end of the post-election crisis, to assess the likelihood of sustained economic growth and significant poverty reduction in the country. Finally, the report analyzes the effects of declining oil prices and the appreciation of the dollar against the euro and the CFA franc on the Ivorian economy. This edition does not examine the impact of strong economic growth on the Ivoirian population's well-being indicators such as, poverty, employment and inequality. Within the scope of this report, the objective is to understand the factors contributing to the strong economic recovery in Côte d'Ivoire. This economic update is targeted toward a larger audience, in order to stimulate constructive debate on public policy in the country and between the country and its development partners.Publication Asymmetries in the Union Wage Premium in Ghana(Washington, DC: World Bank, 2004-05)The article uses a matched employer-employee data set for Ghana and adopts a quantile regression approach that allows the effects of unionization to vary across the conditional wage distribution. It is shown that if there are intrafirm differences in unionization, there does appear to be a premium among poorer paid workers in the formal sector. Although this cannot be given a causal interpretation, it suggests important issues about how unions may affect one part of the labor market.Publication Activities, Employment, and Wages in Rural and Semi-Urban Mexico(World Bank, Washington, DC, 2005-04)The author addresses the labor markets in rural and semi-urban Mexico. The empirical analyses show that non-farm income shares increase with overall consumption levels and, also, with time. Rural-dwellers in lower quintiles of the consumption distribution tend to earn a larger share of their nonagricultural incomes from wage labor activities. For the poorest, low-productivity wage labor activities are important. The quantile wage regression analysis for rural Mexico shows a rather heterogeneous impact pattern of individual characteristics across the wage distribution on monthly wages. The author's findings reveal that education is key to earning higher wages, and that workers in more dispersed rural areas earn less than their peers in semi-urban rural areas (localities with less than 15,000 inhabitants). The rural non-farm sector is heterogeneous and includes a great variety of activities and productivity levels across non-farm jobs. Moreover it can reduce poverty in a couple of distinct but qualitatively important ways in rural Mexico. The analysis of non-farm employment in rural Mexico suggests that the two key determinants of access to employment and productivity in non-farm activities are education and location.
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