Wage and Productivity Gaps Evidence from Ghana

August 1999 - This paper studies labor market outcomes in Ghana. The analysis focuses on the formal manufacturing wage sector and, more specifically, on the determinants of wages and productivity for various groups of workers. It tests hypotheses that relate to the impacts of individual and enterpri...

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Bibliographic Details
Main Author: Verner, Dorte
Format: eBook
Language:English
Published: Washington, D.C The World Bank 1999
Subjects:
Online Access:
Collection: World Bank E-Library Archive - Collection details see MPG.ReNa
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245 0 0 |a Wage and Productivity Gaps  |h Elektronische Ressource  |b Evidence from Ghana  |c Verner, Dorte 
260 |a Washington, D.C  |b The World Bank  |c 1999 
300 |a 54 p. 
653 |a Labor Market 
653 |a Macroeconomics and Economic Growth 
653 |a Investment 
653 |a Financial Literacy 
653 |a Sales 
653 |a Regression Analyses 
653 |a Productivity 
653 |a Labor Force 
653 |a Supply 
653 |a Training 
653 |a Social Protections and Labor 
653 |a Large Enterprises 
653 |a Labor Markets 
653 |a Education 
653 |a Information 
653 |a Earnings 
653 |a Research Assistance 
653 |a Tertiary Education 
653 |a Population 
653 |a Access and Equity in Basic Education 
653 |a Finance and Financial Sector Development 
653 |a Wages 
653 |a Wage 
653 |a Economic Theory and Research 
653 |a Primary Education 
653 |a Labor Policies 
653 |a Education for All 
653 |a Demand 
653 |a Questionnaire 
653 |a Investing 
700 1 |a Verner, Dorte 
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520 |a August 1999 - This paper studies labor market outcomes in Ghana. The analysis focuses on the formal manufacturing wage sector and, more specifically, on the determinants of wages and productivity for various groups of workers. It tests hypotheses that relate to the impacts of individual and enterprise characteristics on wages. Furthermore, it compares the marginal impact of each of these characteristics on wages with their respective impact on labor productivity. The results may indicate whether, for example, there exists a spot labor market, discrimination, and/or structural differences among sectors and groups of workers. The paper analyzes whether experience, training, and education impact wages and productivity. In recent years, analysts have paid a lot of attention to the impacts of education and labor force training. The rationale for investing in human capital is that a more skilled and educated labor force is more productive than a less educated one. Therefore, policymakers emphasize investment in human capital because they believe that, in general, it increases labor productivity. However, there is not have much evidence of this relationship in the Africa region.11 Glewwe (1996) finds that there is no return to human capital in Ghana. This paper aims partially at filling this void by presenting evidence on the direct impact of education, training, and experience on productivity for different groups of workers using econometric regression analyses. It looks at whether Ghanaian labor markets are characterized by gender discrimination. It analyzes whether the labor markets are competitive. And it looks at whether union membership, manufacturing sector, and firm location affect labor market outcomes. This paper-a product of Human Development 3, Africa Technical Families-is part of a larger effort in the region to understand how labor markets work in Africa. The author may be contacted at dverner@worldbank.org