Determinants of Price Differential for Labour Pricing within the Ghanaian Construction Industry

The construction industry is a sector of the economy that transforms various resources into constructed physical economic and social infrastructure necessary for socio-economic development. Labour forms an integral part of the construction process and cannot be overlooked. The reward of labour wages has become a domain for agitation in recent times as a result of the differential pricing of labour across the country, ranging from city to city. The aim of this study is to explore the determinants that account for different rates of labour. A mixed method approach was used that involves semi-structure interview and closed-ended questionnaires. The target population for the data collection was contractors, labourers and consultants within Ghana. Data generated from the survey were analysed using relative importance index (RII). The study revealed that consultants, labourers and contractors take into account the level of skill of personnel, demand for labour competition among firms, use of plant and equipment among others as the important determinants for labour pricing differential. The empirical data are limited to the views of consultants, labourers and contractors in the Ghanaian construction industry only. The article is of utmost importance for policymakers especially consultants in estimating prices of labour for certain geographical regions. Likewise, the study has the potential of spurring future development of the industry in order to stop labour agitation and also serve as a basis for future research.