Labour markets for irrigated agriculture in central Ethiopia: Wage premiums and segmentation

Mengistu Assefa Wendimu () and Peter Gibbon ()
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Mengistu Assefa Wendimu: Danish Institute for International Studies (DIIS), Natural Resources and Development
Peter Gibbon: Danish Institute for International Studies (DIIS)

No 2014/06, IFRO Working Paper from University of Copenhagen, Department of Food and Resource Economics

Abstract: Labour market segmentation in developing countries has been considered in a growing literature, some of which suggests an informal sector wage premium. However, such studies have mainly focused on urban labour markets and have not discriminated between the informally self-employed and wage workers. This paper examines segmentation in rural markets for agricultural wage workers in Ethiopia, controlling for location, farming systems and observed worker characteristics. Applying an endogenous switching model with simultaneous estimation of wage equations it establishes an informal sector wage premium, self-selection into the informal sector and sectorally-distinct wage determination mechanisms.

Keywords: Labour market segmentation; Agricultural labour markets; Wage premiums; Large-scale agriculture; Ethiopia (search for similar items in EconPapers)
JEL-codes: J41 J42 J43 J45 J46 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2014-09
New Economics Papers: this item is included in nep-agr and nep-iue
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:foi:wpaper:2014_06

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