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

Main author: Oya, Carlos
Other authors: Schaefer, Florian
Format: Journal Article           
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id eprints-39387
recordtype eprints
institution SOAS, University of London
collection SOAS Research Online
language English
language_search English
description 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.
format Journal Article
author Oya, Carlos
author_facet Oya, Carlos
Schaefer, Florian
authorStr Oya, Carlos
author_letter Oya, Carlos
author2 Schaefer, Florian
author2Str Schaefer, Florian
title Do Chinese firms in Africa pay lower wages? A comparative analysis of manufacturing and construction firms in Angola and Ethiopia.
publisher Elsevier
publishDate 2023
url https://eprints.soas.ac.uk/39387/