Wages and Unemployment in an Urban African Labour Market

John Hoddinott

Economic Journal, 1996, vol. 106, issue 439, 1610-26

Abstract: This paper argues that urban labor markets in Africa exhibit a wage curve similar to those found in the United States, Britain, Canada and other developed countries. Drawing on data from the Ivory Coast, the author finds that urban wages are depressed by higher levels of unemployment. This result is robust to changes in model specification and level of aggregation. It is consistent with the model of wage determination developed by C. Shapiro and J. Stiglitz (1984) and D. Blanchflower and A. Oswald (1995) but not with claims that urban wages are invariant to unemployment. Copyright 1996 by Royal Economic Society.

Date: 1996
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