IJEB
June_2009 Issue: Vol 8. No. 1.
Article: INTER-INDUSTRY WAGE GAP
AND SKILL UPGRADING IN NEPALESE MANUFACTURING BY
Govinda Koirala
Abstract: Abstract:
The paper focuses on the two classes of workers: production and
non-production workers (may be considered as unskilled and skilled
labor force) in manufacturing industries of Nepal. We analyze
the wage differentials and the factors affecting the differentials
between skilled and unskilled workers. The paper highlights some
of the similarities and differences of workers wages between industries.
This subdivision lets us see directly whether differences have
been narrowed with time among both the production and non-production
workers in various industries. The analysis also seeks the information
about how such factors as firm ownership, firm's size, export
orientation and skill intensity in the industry affect wage differentials.
The analysis employs three separate census years (1992, 1997,
and 2002) from the census of manufacturing establishment in Nepal
to facilitate building a panel set of data. The study is also
unique in the sense that it draws information of individual firms
to estimate the wage differential between skilled and unskilled
workers in each firm in a developing country.