Scandinavian Working Papers in Economics

Working Papers in Economics,
University of Gothenburg, Department of Economics

No 50: Trade Union Membership and Earnings in Kenyan Manufacturing Firms

Damiano Kulundu Manda, Arne Bigsten and Germano Mwabu
Additional contact information
Damiano Kulundu Manda: Department of Economics University of Nairobi, Postal: ,
Arne Bigsten: Department of Economics, School of Economics and Commercial Law, Göteborg University, Postal: Box 640, SE 405 30 GÖTEBORG
Germano Mwabu: Departement of Economics University of Nairobi

Abstract: This paper analyses the effect of trade unions on earnings in Kenyan manufacturing using a switching regression model, which takes into account endogeneity of union status of workers. In contrast to earlier studies of the Kenyan labour market, which indicate that the union effect on wages is negative, our results show a strong positive trade union effect. We also show that it is workers with relatively weak position in the labour market that joins the union.

Keywords: Unions; wages; manufacturing; Kenya

JEL-codes: J50

21 pages, May 31, 2001

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