Do relative pay comparisons matter for worker behaviour? A long tradition in economic thought – as well as in psychology, sociology, and human resource management – has advanced the notion that individuals care about not only their own pay but also their pay relative to that of their co-workers. When subjected to unequal pay, workers…
Labour Markets
Modelling Labour Markets in LICs with Imperfect Data
Despite the centrality of the labour market to the questions of poverty and inequality, African labour markets are not well understood and significant research gaps exist. These gaps have important implications: they weaken the ability of governments to design and implement effective policies and hamper the monitoring of change and the measurement of impact. Within…
Measuring Labour in Farm Households in Africa
In low-income countries, work in household owned and managed farms account for a large share of the labour force. Yet, to date, there is very little research on the approaches to measuring farm labour. Typically most measurements of farm labour involve a cumulative number representing a wide range of activities. For example, male labour is…
Are Labor Costs in Africa too High?
High labor costs appear to be a factor that undermines the creation of low-skill jobs in formal manufacturing firms at a large scale in several African countries. First, there exists a small number of formal manufacturing firms in Africa. These firms face higher labor costs than similar firms in numerous comparator countries, even after controlling…