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GLM|LIC Policy Brief No. 27

Wages in Zimbabwean Formal and Informal Manufacturing

Firm-Level Responses to Low Levels of Demand and Economic Uncertainty

Matched Employee-Employer Panel-Data for Labour Market Analysis in Zimbabwe

Zimbabwean manufacturing firms operate in an environment of economic volatility and policy uncertainty. The sector’s role in creating employment opportunities has diminished substantially from independence in 1980 when it contributed almost a quarter of non-agriculture jobs. This research examines how workers in the Zimbabwean manufacturing sector are affected as a consequence of the challenges faced by the firms they work in. It draws on survey data collected in 2015 from over 1300 workers in almost 200 Zimbabwean formal sector manufacturing firms and 170 informal sector workers in 131 informal firms. In 2016 over 1,000 of the formal sector workers were resurveyed regardless of whether they were in the same job.

GLM|LIC Policy Brief No. 27

Wages in Zimbabwean Formal and Informal Manufacturing Firm-Level Responses to Low Levels of Demand and Economic Uncertainty

  • Neil Rankin
  • Lawrence Edwards
  • Robert James Davies
  • Remco H. Oostendorp
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IZA and the UK Government Department for International Development (DFID) run the joint IZA/DFID Growth and Labour Markets in Low Income Countries Programme (GLM|LIC), which aims to improve worldwide knowledge on labour market issues in low-income countries (LICs).
Gender focus Starting in mid-2019, the focus will be on gender issues especially. The new programme “Growth, Gender and Labour Markets in Low-Income Countries” (G2LM|LIC) will foster research that aims to guide future gender and labour market policies.

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Established in 1998 in Bonn, Germany, IZA is an independent, non-profit research institution supported by the Deutsche Post Foundation with a focus on the analysis of global labour markets. It operates an international network of about 1,500 economists and researchers spanning across more than 50 countries.

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