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Research ArticleArticles

Wages and Labor Management in African Manufacturing

Marcel Fafchamps and Måns Söderbom
Journal of Human Resources, March 2006, XLI (2) 356-379; DOI: https://doi.org/10.3368/jhr.XLI.2.356
Marcel Fafchamps
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Måns Söderbom
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Abstract

Using matched employer-employee data from ten African countries, we examine the relationship between wages, worker supervision, and labor productivity in manufacturing. Wages increase with firm size for both production workers and supervisors. We develop a two-tier model of supervision that can account for this stylized fact and we fit the structural model to the data. We find a strong effect of both supervision and wages on effort and hence on labor productivity. Labor management in sub-Saharan Africa appears problematic, with much higher supervisor-to-worker ratios than elsewhere and a higher elasticity of effort with respect to supervision than in Morocco.

  • Received August 2004.
  • Accepted October 2005.

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Journal of Human Resources
Vol. XLI, Issue 2
31 Mar 2006
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Wages and Labor Management in African Manufacturing
Marcel Fafchamps, Måns Söderbom
Journal of Human Resources Mar 2006, XLI (2) 356-379; DOI: 10.3368/jhr.XLI.2.356

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Wages and Labor Management in African Manufacturing
Marcel Fafchamps, Måns Söderbom
Journal of Human Resources Mar 2006, XLI (2) 356-379; DOI: 10.3368/jhr.XLI.2.356
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