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The returns to formality and informality in urban Africa.

Abstract:

This paper addresses the question as to why we observe such large differentials in earnings in urban African labour markets after controlling for observable human capital. We first use a three year panel across Ghana and Tanzania and find common patterns for both countries assuming that movement between occupations is exogenous. Unobserved individual market ability is by far the most important factor explaining the variance of earnings. Sector differences do matter even with controls for abil...

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Paolo Falco More by this author
Andrew Kerr More by this author
Neil Rankin More by this author
Justin Sandefur More by this author
Francis Teal More by this author
Volume:
WPS/2010-03
Series:
CSAE Working Paper Series
Publication date:
2010
URN:
uuid:f7e21a18-bbc9-45d9-859d-efb0b4f3cab7
Local pid:
oai:economics.ouls.ox.ac.uk:14532
Language:
English

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