Wage and productivity premiums in sub-saharan Africa
By: Johannes van Biesebroeck.
Contributors: National Bureau of Economic Research.
Series: NBER working paper series -- no. 13306.; Working paper series (National Bureau of Economic Research) -- working paper no. 13306.
Publisher: National Bureau of Economic Research
Published: 2007
Place of publication: Cambridge, Mass
Language: eng
Number of pages: 35
Subjects: Industrial productivity -- Africa, Sub-Saharan -- Mathematical models; Wages -- Africa, Sub-Saharan -- Mathematical models
Description: 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. A methodological contribution is to estimate the firm level production function jointly with the individual level wage equation using a feasible GLS estimator. The additional information of individual workers leads to more precise estimates, especially of the wage premiums, and to a more accurate test. The results indicate that equality holds strongly for the most developed country in the sample (Zimbabwe), but not at all for the least developed country (Tanzania). Moreover, the breakdown in correct remuneration in the two least developed countries follows a distinct pattern. On the one hand, wage premiums exceed productivity premiums for general human capital characteristics (experience and schooling). On the other hand, salaries hardly increase for more firm-specific human capital characteristics (tenure and training), even though these have a clear productivity effect.
Notes: "August 2007"

Includes bibliographical references (p. 33-35).

Also available in PDF from the NBER world wide web site (www.nber.org).