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How industry - labor relations and government policies affect Senegal's economic performance

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  • Terrell, Katherine
  • Svejnar, Jan

Abstract

Senegal is in a long-term economic crisis. Senegalese industry suffers from a highly adversarial system of industrial and labor relations, excessive government regulations in some areas and inadequate government support in others, and many misperceptions about the ethnically diverse labor force and enterprise ownership. Since the late 1970s, the Senegalese government has recognized the need to embark on a sustained and long-term adjustment program and has searched for appropriate policies to pursue this goal. The main aim of this paper is to provide an understanding of the functioning of the industrial labor market and evaluate the effects of the employment and wage setting practices on enterprise efficiency. In undertaking this task, the paper pays particular attention to: (a) government wage and employment regulations; (b) the role of trade unions and the organizational characteristics of firms; (c) the national and skill composition of the labor force and the corresponding labor productivity and wage differentials; (d) the existence of training schemes and skill bottlenecks; (e) the effects of education, experience, and training on worker earnings; and (f) the relationship between a worker's income and the migration of family members from the countryside.

Suggested Citation

  • Terrell, Katherine & Svejnar, Jan, 1990. "How industry - labor relations and government policies affect Senegal's economic performance," Policy Research Working Paper Series 271, The World Bank.
    • Handle: RePEc:wbk:wbrwps:271
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    References listed on IDEAS

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    1. Todaro, Michael P, 1969. "A Model for Labor Migration and Urban Unemployment in Less Developed Countries," American Economic Review, American Economic Association, vol. 59(1), pages 138-148, March.
    2. Caves, Douglas W & Christensen, Laurits R, 1980. "The Relative Efficiency of Public and Private Firms in a Competitive Environment: The Case of Canadian Railroads," Journal of Political Economy, University of Chicago Press, vol. 88(5), pages 958-976, October.
    3. Svejnar, Jan, 1984. "The determinants of industrial-sector earnings in Senegal," Journal of Development Economics, Elsevier, vol. 15(1-3), pages 289-311.
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    Cited by:

    1. Stephen Golub & Aly Mbaye & Hanyu Chwe, 2015. "Labor Market Regulations in Sub-Saharan Africa, With a Focus on Senegal," Working Papers 201505, University of Cape Town, Development Policy Research Unit.
    2. Ahmadou Aly Mbaye & Stephen Golub & Anastasia Vasilyeva, 2019. "Senegal’s International Competitiveness and Employment Creation for Women and Youth. The Product Space Analysis and Fieldwork Findings," Working Papers idrcdprusenegal, University of Cape Town, Development Policy Research Unit.

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