The Problem Or Wage Determination In Ethiopia A Case Study Of The State-owned Textile Industries

The objective of this study has been to identify inter'rnindustry and interpersonal wage differential and to explainrnthe determinants of mean wags and individual wares in thernstate-owned textile industries. The necessary informationrnwas obtained through sample survey and secondary sources,rnThe coefficient of variation. Simple range, percentages,rnstandard deviation, coefficient of valuation, Lorenz curve,rnGini efficient, multiple linear and semi- logarithmic regression,rnand principal component methods were used to analyzernthe data.rnThe results indicate that 1) the institutional variablesrnsuch as the government legislations and directives influencernthe wage determination process in the state-owned textilernindustries . 2) there exists high inter 'industry and interpersonalrnwage differential. 3) production, profit and fixedrnassets jointly affect the mean wage differential between thernindustries. 4) Education and experience within an industryrnare increasing function of wages. Moreover, the variablesrnsex , marital status, occupation, experience outside the industry,rnand change of jobs influence the level of wages in the state"'rnowned textile industries.rnThe paper suggests for the restructuring: of the existingrnwage system particularly the introduction of wage policy onrnthe needs of the economy not only for the textile sector butrnalso for the whole economy.

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