Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/204374
Authors: 
Wendimu, Mengistu Assefa
Gibbon, Peter
Year of Publication: 
2014
Series/Report no.: 
IFRO Working Paper No. 2014/06
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.
Subjects: 
Labour market segmentation
Agricultural labour markets
Wage premiums
Large-scale agriculture
Ethiopia
JEL: 
J41
J42
J43
J45
J46
Document Type: 
Working Paper

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