Working Paper: CEPR ID: DP6003
Authors: Nagy Benhassine; Marcel Fafchamps; Mns Sderbom
Abstract: Using matched employer-employee data from eleven African countries, we investigate if there is job sorting in African labor markets. We find that much of the wage gap correlated with education is driven by selection across occupations and firms. This is consistent with educated workers being more effective at complex tasks like labor management. In all countries the education wage gap widens rapidly at high low levels of education. Most of the education wage gap at low levels of education can be explained by selection across occupations. We also find that the education wage gap tends to be higher for women, except in Morocco where many poorly educated women work in the export garment sector. A large proportion of the gender wage gap is explained by selection into low wage occupations and firms.
Keywords: Africa; Gender Wage Gap; Job Selection; Manufacturing; Return to Education
JEL Codes: J24; J31; O14
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| education (I29) | job placements (J68) |
| job placements (J68) | wages (J31) |
| education (I29) | wages (J31) |
| gender (J16) | job sorting (J40) |
| job sorting (J40) | wage gap (J31) |
| education (I29) | selection across occupations (J29) |
| selection across occupations (J29) | education wage gap (J31) |
| gender (J16) | selection into low-wage occupations (J79) |
| selection into low-wage occupations (J79) | gender wage gap (J31) |
| education (I29) | selection across firms (L25) |
| selection across firms (L25) | education wage gap (J31) |