NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Wage and Productivity Premiums in Sub-Saharan Africa

Johannes Van Biesebroeck

NBER Working Paper No. 13306
Issued in August 2007
NBER Program(s):   LS   PR

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.

download in pdf format
   (211 K)

email paper

This paper is available as PDF (211 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w13306

Published: Wage and Productivity Premiums in Sub-Saharan Africa, Johannes Van Biesebroeck. in The Analysis of Firms and Employees: Quantitative and Qualitative Approaches, Bender, Lane, Shaw, Andersson, and von Wachter. 2008

Users who downloaded this paper also downloaded these:
Bhattacharya, Bundorf, Pace, and Sood Does Health Insurance Make You Fat?
Van Biesebroeck w10174 Wages Equal Productivity: Fact or Fiction?
Frazer and Van Biesebroeck w13222 Trade Growth under the African Growth and Opportunity Act
Lallemand, Plasman, and Rycx w12978 Wage Structure and Firm Productivity in Belgium
Lazear w5672 Performance Pay and Productivity
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us