TY - UNPB

T1 - Labour markets for irrigated agriculture in central Ethiopia

T2 - wage premiums and segmentation

AU - Wendimu, Mengistu Assefa

AU - Gibbon, Peter

PY - 2014

Y1 - 2014

N2 - 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.

AB - 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.

M3 - Working paper

T3 - IFRO Working Paper

BT - Labour markets for irrigated agriculture in central Ethiopia

PB - Department of Food and Resource Economics, University of Copenhagen

CY - Frederiksberg

ER -