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Do Chinese firms in Africa pay lower wages? A comparative analysis of manufacturing and construction firms in Angola and Ethiopia.

Oya, Carlos; Schaefer, Florian

Do Chinese firms in Africa pay lower wages? A comparative analysis of manufacturing and construction firms in Angola and Ethiopia. Thumbnail


Authors

Florian Schaefer



Abstract

This paper analyses wage differences between Chinese and non-Chinese firms in Angola and Ethiopia. The growing engagement of Chinese firms in sub-Saharan Africa has generated debates about the working conditions offered to African workers. However, the evidence for many of the claims made about wages in Chinese firms operating in sub-Saharan Africa is unconvincing. In this paper the authors identify problems with the existing literature and provide new comparative evidence on wages in Chinese, other foreign and domestic firms in Angola and Ethiopia. Drawing on over 1,400 worker-level interviews the authors find that Chinese firms do not consistently pay less than comparable firms. Using a multi-scalar labour regime framework the authors show that a combination individual worker characteristics, sector specificities, and firm attributes are necessary to explain variations in wages in both countries. The national origin of firms by itself cannot explain the observed differences in wages.

Citation

Oya, C., & Schaefer, F. (2023). Do Chinese firms in Africa pay lower wages? A comparative analysis of manufacturing and construction firms in Angola and Ethiopia. World Development, 168, Article 106266. https://doi.org/10.1016/j.worlddev.2023.106266

Journal Article Type Article
Acceptance Date Mar 29, 2023
Publication Date Apr 8, 2023
Deposit Date Apr 25, 2023
Publicly Available Date Apr 25, 2023
Journal World Development
Print ISSN 0305-750X
Electronic ISSN 1873-5991
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 168
Article Number 106266
DOI https://doi.org/10.1016/j.worlddev.2023.106266
Keywords Wages, Labour regimes, Manufacturing, Construction, China, Angola, Ethiopia
Publisher URL https://www.sciencedirect.com/science/article/pii/S0305750X23000840

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