The Impact of Labour Market Crisis on Developing Economics the Nigeria Experience (1980- 2010)
CHAPTER ONE
OBJECTIVEย OFย THEย STUDY.
The broad objective of these research is to investigate the effect of labour market crisis on developing economic s using Nigeria as a case study. Specifically this research work is set out to achieve the following objectives.
- To investigate the effect of labour market crisis on economic growth of Nigeria.
CHAPTER TWO
LITERATUREย REVIEW
REVIEW OFย THEORITICALย LITERATURE
Research on labour market crisis has taken different dimensions .Some studies were devoted to the effect of minimum wage on economicย growth , the relationship that exist between the incidence of strikes andย industrialย developmentย ,ย activitiesย ofย trade unionsย and unemploymentย .
Aย numberย ofย theoristsย haveย suggestedย thatย aย relationshipย existย between the incidence of strikes and industrial development. Most theoristย agree that the propensity to strike increased during the early periods ofย industrialization .However, widespread disagreement exist about the effectย of advanced economic development on strike activity. Theorist [Blum 1984]ย expect strike activity to fall in late industrialization for reasons such as theย declineย inย unionizationย andย theย identificationย ofย workersย withย management.
The effect of imposing a minimum wage is to increase the wages only of those who would otherwise reduce the lowest wages below the minimum wage. It can be said that labour is highly responsive to relative wages. Lewis [2005] found out that the imposition of minimum wages affect only those in less skilled, low paid jobs. However, these workers earning just above the minimum wage are highly substitutable for those who would otherwise earn below the minimum wage; this is because there is skill differential between them though the job is still relatively unskilled .The impact of minimum wage on total employment may be disproportionately high.
In explaining the impact of strike action on employment [Rao 2000] outlined several effect of strike on employment statistics. He affirmed that strike affects current statistics in the sense that if persons on strike were included in the current employment statistics [CES ] estimates of the aggregate earning data will be inflated.
Strikes are costly to both parties. The firm profits decline and loseย customers permanently. Also a highly publicized strike may diminish theย long run value of the brand name, workers lose income and perhaps evenย their jobs . When the parties have reasonably good information about theย costย andย likelyย outcomeย ofย theย strikeย itย isย irrational toย strike.
Adegbola [1990] has it that trade union have become a political instrument for channeling the protest of relatively less privilege wage earners against the distribution of national wealth between themselves and the distribution pyramid.
CHAPTERย THREE
Advertisements
RESEARCH METHODOLOGY
Oneย ofย theย problemsย numerousย thatย greetedย theย economiesย ofย developing nationsย is the issue of labour market crisis manifested in theย incessant strike actions embarked upon by trade unions, unemploymentย crisisย andย wage inequality.
Thereย hadย alwaysย beenย theย direย needย toย ensureย thatย thereย isย macroeconomicย stabilityย whichย cannotย beย achievedย inย aย conditionย ofย disturbing labour market. This implies that at all times, policy makers mustย identify the variables that bring disequilibrium to the economic system andย strive toย put themย in check.
CHAPTER FOURย
PRESENTATIONย ANDย ANALYSISย OFย RESULT
- PRESENTATION OFย RESULTS
Fromย theย regressionย resultsย theย followingย wereย obtained
CHAPTERย FIVE
SUMMARY,ย POLICYย IMPLEMENTATIONย ANDย CONCLUSION
SUMMARY
This research work analysis the impact of labour market crisis onย developing economics using Nigeria experience from 1980- 2010 [a span ofย thirty years]. The ordinary least square [OlS] technique is was used toย achieveย theย objectiveย of the study.
The number of man- day loss proxy to the labour market crisis whileย gross domestic product is use as proxy for economic growth. The result ofย the studyย employedย secondaryย data.
The result shows that man- day loss has a negative relationship with the gross domestic product. Thus we reject the null hypothesis, and conclude that there is a relationship between labour market crisis and economic growth in Nigeria. Inflation was found to have an insignificant impact on the gross domestic product while industrial output was ย ย ย ย the only significant parameter in the model.
CONCLUSION
Labour market crisis is a problem in developing economics especially in Nigeria; unemployment, wage inequality, strike actions, Problem of minimum wage e.t.c and this affects the growth of an economy. Government should look into these problems for the betterment of the economy and society as a whole.
BIBLIOGRAPHY
- Akinboyeย G.Gย [1987]ย Jobย Creationย asย aย Measureย forย Employmentย Problemย inย Developingย Countries ; Theย Nigeria Hollandย Experience.ย Increasingย productivityย Centreย ,ย Nigeria
- Beldacber,ย D,ย andย Watson,ย Rย ,ย [2004]ย Industrialย Worldย .ย Newย Jerseyย Universityย Press.
- Dahradorf, R, [1959] Class and Conflict In Industrial Society.
- Stanfordย California;ย Stanfordย Universityย Press.
JOURNAL
- Bhattacherjee,ย D.ย {1999}ย Organizedย Labourย andย Liberationย inย India:
- Presentย andย Future .ย Instituteย ofย Managementย ofย Calcutta.
- Blum, A.A {1964} Prospect of Organization Of White Collar- Jobs :ย Sociologicalย Review.
- Britt, D. and Gave O.R. {1972} Industrial Conflict and Unionization: Americanย Sociologicalย Review.
- Chripanhura B.M and Makwararara T. [2002} Market and Economic Development 1980-2000. Zimbabwe Congress of Trade Union.
