An analysis of the variation in modern sector earnings among the Districts and major urban centres in kenya.

Abstract

The paper analyses a large body of unpublished data collected by the Annual 2numeration of Employees. Occupational and industrial wage differentials are examined at the national level and then the technique of standardization is eQployed to explain inter-district and inter-town average Dodern sector earnings differentials. These differences are attributed to the occupational and industrial "mixes" of the districts and town and to the "area effect" the extent to which sinilarly classified occupations and industries pay different wages in districts and town. The latter effect is taken as a measure of the extent to F!1ich labour markets are segmented. and is found to be particularly important in modern sector district labour