The Problem of Wage Determination in Ethiopia: A Case Study of the State-owned Textile Industries

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Date

1986-06

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Publisher

A.A.U

Abstract

The objective of this study has been to identify inter' industry and interpersonal wage differential and to explain the determinants of mean wages and individual wares in the state-owned textile industries. The necessary information was obtained through sample survey and secondary sources , The coefficient of variation. simple range, percentages, standard deviation, coefficient of variation, Lorenz curve, Gini efficient, multiple linear and semi- logarithmic regression, and principal component methods were used to analyze the data. The results indicate that 1) the institutional variables such as the government legislations and directives influence the wage determination process in the state-owned textile industries . 2) there exists high inter 'industry and interpersonal wage differential. 3) production, profit and fixed assets jointly affect the mean wage differential between the industries. 4) Education and experience within an industry are increasing function of wages. Moreover, the variables sex, marital status, occupation, experience outside the industry, and change of jobs influence the level of wages in the state"' owned textile industries. The paper suggests for the restructuring of the existing wage system particularly the introduction of wage policy on the needs of the economy not only for the textile sector but also for the whole economy .

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Keywords

Textile Industries, Wage Determination

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