The Impact of Labour Market Crisis on Developing Economics the Nigeria Experience (1980- 2010)
CHAPTER ONE
OBJECTIVE OF THE 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
LITERATURE REVIEW
REVIEW OF THEORITICAL LITERATURE
Research on labour market crisis has taken different dimensions .Some studies were devoted to the effect of minimum wage on economic growth , the relationship that exist between the incidence of strikes and industrial development , activities of trade unions and unemployment .
A number of theorists have suggested that a relationship exist between the incidence of strikes and industrial development. Most theorist agree that the propensity to strike increased during the early periods of industrialization .However, widespread disagreement exist about the effect of advanced economic development on strike activity. Theorist [Blum 1984] expect strike activity to fall in late industrialization for reasons such as the decline in unionization and the identification of workers with 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 lose customers permanently. Also a highly publicized strike may diminish the long run value of the brand name, workers lose income and perhaps even their jobs . When the parties have reasonably good information about the cost and likely outcome of the strike it is irrational to 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.
CHAPTER THREE
RESEARCH METHODOLOGY
One of the problems numerous that greeted the economies of developing nations is the issue of labour market crisis manifested in the incessant strike actions embarked upon by trade unions, unemployment crisis and wage inequality.
There had always been the dire need to ensure that there is macroeconomic stability which cannot be achieved in a condition of disturbing labour market. This implies that at all times, policy makers must identify the variables that bring disequilibrium to the economic system and strive to put them in check.
CHAPTER FOUR
PRESENTATION AND ANALYSIS OF RESULT
- PRESENTATION OF RESULTS
From the regression results the following were obtained
CHAPTER FIVE
SUMMARY, POLICY IMPLEMENTATION AND CONCLUSION
SUMMARY
This research work analysis the impact of labour market crisis on developing economics using Nigeria experience from 1980- 2010 [a span of thirty years]. The ordinary least square [OlS] technique is was used to achieve the objective of the study.
The number of man- day loss proxy to the labour market crisis while gross domestic product is use as proxy for economic growth. The result of the study employed secondary 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 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
- Akinboye G.G [1987] Job Creation as a Measure for Employment Problem in Developing Countries ; The Nigeria Holland Experience. Increasing productivity Centre , Nigeria
- Beldacber, D, and Watson, R , [2004] Industrial World . New Jersey University Press.
- Dahradorf, R, [1959] Class and Conflict In Industrial Society.
- Stanford California; Stanford University Press.
JOURNAL
- Bhattacherjee, D. {1999} Organized Labour and Liberation in India:
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- Britt, D. and Gave O.R. {1972} Industrial Conflict and Unionization: American Sociological Review.
- Chripanhura B.M and Makwararara T. [2002} Market and Economic Development 1980-2000. Zimbabwe Congress of Trade Union.
