Wages through booms and recessions: a case study of Zimbabwe

This paper examines developments in the wage system in Zimbabwe, focusing on wage differences, the macroeconomic role of wages, and the effects of economic changes on wages. It traces wage trends between 1980 and 2002, the period for which reliable data are available. The paper observes that real wages have been flexible and have fallen sharply. Wage inflexibility is thus ruled out as a cause of unemployment. The collapse of wages has given rise to non-standard labour market practices as workers try to cushion themselves against rapid wage declines. Wages also exhibit wide gender, racial and occupational differentials. The paper also argues that a wage policy in Zimbabwe must be pillared on decentralized, coordinated and synchronized collective bargaining. Bibliogr., ref., sum. [Journal abstract]

Title: Wages through booms and recessions: a case study of Zimbabwe
Author: Ncube, Mkhululi
Year: 2005
Periodical: South African Journal of Economics
Volume: 73
Issue: 3
Pages: 510-532
Language: English
Geographic term: Zimbabwe
Subject: wage differentials
External link: https://onlinelibrary.wiley.com/doi/10.1111/j.1813-6982.2005.00035.x/pdf
Abstract: This paper examines developments in the wage system in Zimbabwe, focusing on wage differences, the macroeconomic role of wages, and the effects of economic changes on wages. It traces wage trends between 1980 and 2002, the period for which reliable data are available. The paper observes that real wages have been flexible and have fallen sharply. Wage inflexibility is thus ruled out as a cause of unemployment. The collapse of wages has given rise to non-standard labour market practices as workers try to cushion themselves against rapid wage declines. Wages also exhibit wide gender, racial and occupational differentials. The paper also argues that a wage policy in Zimbabwe must be pillared on decentralized, coordinated and synchronized collective bargaining. Bibliogr., ref., sum. [Journal abstract]