Wage Gaps and Job Sorting in African Manufacturing

Posted: 2 Nov 2009

See all articles by Marcel Fafchamps

Marcel Fafchamps

Stanford University - Freeman Spogli Institute for International Studies

Måns Söderbom

affiliation not provided to SSRN

Najy Benhassine

Massachusetts Institute of Technology (MIT) - Economics, Finance, Accounting (EFA)

Multiple version iconThere are 2 versions of this paper

Date Written: November 2009

Abstract

Using matched employer-employee data from eleven African countries, we investigate if there is job sorting in African labour markets. We find that much of the wage gap associated with education is driven by selection across occupations and firms. This is consistent with educated workers being more effective at complex tasks such as labour management. In all countries, the education wage gap widens rapidly at high levels of education. Most of the education wage gap at low levels of education can be explained by selection across occupations. We also find that the education wage gap tends to be higher for women, except in Morocco where many poorly educated women work in the garment sector. A large share of the gender wage gap is explained by selection into low wage occupations and firms.

Keywords: O12, O14, J31

Suggested Citation

Fafchamps, Marcel and Söderbom, Måns and Benhassine, Najy, Wage Gaps and Job Sorting in African Manufacturing (November 2009). Journal of African Economies, Vol. 18, Issue 5, pp. 824-868, 2009. Available at SSRN: https://ssrn.com/abstract=1496691 or http://dx.doi.org/ejp005

Marcel Fafchamps (Contact Author)

Stanford University - Freeman Spogli Institute for International Studies ( email )

Stanford, CA 94305
United States

Måns Söderbom

affiliation not provided to SSRN

No Address Available

Najy Benhassine

Massachusetts Institute of Technology (MIT) - Economics, Finance, Accounting (EFA) ( email )

77 Massachusetts Avenue
Cambridge, MA 02139-4307
United States

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