Pays pauvres, pays bon marché ? Regard comparatif sur le coût de la main-d’œuvre dans le secteur industriel en Afrique

Alan Gelb, Christian Meyer and Vijaya Ramachandran

Revue d’économie du développement, 2016, vol. 24, issue 2, 51-92

Abstract: This paper compares labor costs and productivity in selected African countries relative to comparators using data for 25 countries from the World Bank?s Enterprise Surveys. It concludes that industrial labor costs are far higher in Africa than one might expect, given levels of Gross Domestic Product (GDP) per capita. Part of this is an ?enclave effect?: both labor costs and labor productivity are far higher in Africa, relative to GDP per capita, than in comparator countries. Another part reflects a steeper labor cost curve; as firms are larger and more productive their labor costs increase more in Africa than elsewhere. But there is still a sizeable residual ?Africa effect? after controlling for such factors. The authors conclude that there is an urgent need to reduce ?external costs,? through focused investments (power) as well as a general improvement in the business climate. However, with the exception of a few countries like Ethiopia, it is not clear that Africa?s low-income level automatically translates into a comparative advantage in low-wage basic manufactures. The authors argue that it is more likely to reside in sectors closely linked with the rich and varied natural resource endowments of the countries, whether supplying or processing industries. Codes JEL : D2, L6, O14.

Keywords: Africa; manufacturing; private sector; labor cost; productivity; firm survey (search for similar items in EconPapers)
JEL-codes: D2 L6 O14 (search for similar items in EconPapers)
Date: 2016
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