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THE SHADOW‐PRICE OF LABOUR AND EMPLOYMENT BENEFITS IN A DEVELOPING ECONOMY
Authors:H.F. CAMPBELL
Affiliation:1. University of Queensland;2. I would like to thank Modowa Gumoi (UPNG) for help in designing and carrying out the labour force survey, Jerome Tioti, National Fisheries Authority (NFA) for supervising the conduct of the survey, the interviewers Marylouise Avu, Rodney Kirarock and Christa Lulu, the RD Company for facilitating the survey, and particularly Kirsten Decrepito of RD who was very helpful in providing information about the workforce, Stephanie Seales who transcribed the survey responses, and Ronald Kuk and various other members of the NFA who provided valuable support and advice. The School of Economics, University of Queensland and the Centre for Economics and Management of Aquatic Resources (CEMARE) provided research support, and The Australian Center for International Agricultural Research (ACIAR) provided funding under Project ASEM/2004/011.
Abstract:The paper describes and analyses data obtained from a survey of the labour force of a tuna cannery in Papua New Guinea. Estimates of the value of employees’ work and travel time are obtained and used to calculate the shadow‐price of labour under alternative assumptions about the labour market and the economy. The shadow‐prices are used to calculate annual employment benefits to the indigenous labour force and to the economy as a whole. These benefits can amount to approximately half of the gross wage bill. Benefits by sex and skill category of worker are also reported. The results of the paper can be used to calculate employment benefits in other similar circumstances in other industries and countries.
Keywords:
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