Abstract:In this article, we develop indicators of vulnerability in employment in seven economic capitals of West Africa (Abidjan, Bamako, Cotonou, Dakar, Lome, Niamey, and Ouagadougou) and study their links with individual incomes from the main job. We draw on data from the 1-2-3 Surveys in 2002-2003 to make a cross-country comparison using rigorously the same variables and methodology for each country. The theory of compensating differentials states that workers may receive pecuniary compensation commensurate with the strenuous or hazardous nature of their tasks or adverse working conditions. Our interpretation of the link between employment status and incomes draws on these developments, applying them to both working conditions themselves and more broadly to vulnerability in employment. The main tested assumption is that high levels of employment vulnerability could be compensated by greater earnings. Following recent work by Fernandez and Nordman (2009), we allow for individual and job characteristics (the latter being used to construct the composite index of vulnerability) to be differentially valued for conditionally high and low income earners.Our composite index of employment vulnerability indicates that 85% of the private sector workers in all the economic capitals studied are vulnerable on the basis of at least one criterion. The results show that the average impact of vulnerability on earnings is generally negative for an average level of vulnerability. In the formal private sector of the West African cities, losses of income due to vulnerability are lower for high levels of vulnerability, but do not translate into gains. In the informal sector, however, the average predicted income for a high vulnerability level is higher than the average predicted income for a low vulnerability level. The assumption that average gains may compensate for a certain level of vulnerability is thus confirmed in the informal sector. Quantile earnings regressions show that the impact of vulnerability on earnings is not uniform, particularly in the informal sector where the marginal impact of vulnerability is often positive for higher deciles of the conditional earnings distribution. Consequently, even for average levels of vulnerability, premium pay is found for workers at the top of the distribution. Lastly, we show that the different aspects of vulnerability have diverse impacts on earnings. While there is no compensation for contractual insecurity and itinerant and solitary jobs, visible underemployment generally has a positive impact on the average incomes of workers in these West African cities.
Résumé:Dans cet article, nous construisons des indicateurs de la vulnérabilité au travail dans sept capitales économiques d'Afrique de l'Ouest (Abidjan, Bamako, Cotonou, Dakar, Lomé, Niamey, Ouagadougou) et étudions leurs liens avec les revenus individuels de l'activité principale. Selon la théorie des salaires compensatoires, les travailleurs pourraient recevoir des compensations pécuniaires à hauteur de la pénibilité de leu...