Rent-Sharing, Hold-Up, and Manufacturing Wages in Cote d'Ivoire

Azam, Jean-Paul; Ris, Catherine

Rent-Sharing, Hold-Up, and Manufacturing Wages in Cote d'Ivoire

2014

Azam, Jean-Paul | Ris, Catherine

Labor costs in Francophone Africa are considered high by the standards of low-income countries, at least in the formal sector. Are they a brake on industrialization, or the result of successful enterprise development? Are they imposed on firms by powerful unions, or government regulations, or a by-product of good firm performance? The authors empirically analyze what determines manufacturing wages in Cote d'Ivoire, using an unbalanced panel of individual wages that allows them to control for observable firm-specific effects. They test the rent-sharing, and hold-up theories of wage determination, as well as some aspects of efficiency-wage theories. Their results lean in favor of both rent-sharing, and hold-up, suggesting that workers have some bargaining power, and that in Cote d'Ivoire workers can force renegotiation of labor contracts, in response to new investments.

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AGROVOC Keywords

devaluation discrimination economic development economics economists equations equilibrium human capital immigration income industrialization inflation informal sector isolation less developed countries migrants migration nutrition prediction product markets production technology productivity public sector unemployment vocational training wages workers

Bibliographic information

Publisher

World Bank, Washington, DC

Other Subjects

Numerical value; Wage rates; Inefficiency; Demand curve; Gdp; Service delivery; Dummy variables; Validity; Labor costs; Heteroscedasticity; Significance level; Missing data; Probability; Economic performance; Monitoring technology; Technical assistance; Empirical analysis; Gdp per capita; Labor force; Low-income countries; Policy research; Government regulations; Unemployment rate

Language

English

Type

Publications & Research :: Policy Research Working Paper; Publications & Research

In AGRIS since: 2016-03-15

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