ABSTRACT
This chapter aims to examine Senegal’s industrial labor market and relate its principal features, together with the structure of enterprise ownership and government policies, to the country’s economic performance. It assesses how the employment and wage setting system affects allocative and productive efficiency of industrial enterprises. Knowledge of the characteristics and performance of the formal labor market provides an important yardstick against which one can compare and evaluate the performance of the informal labor market. The chapter provides an understanding of the functioning of the industrial labor market and evaluates the effects of the employment and wage setting practices on enterprise efficiency. One of the structural causes of the economic crisis is believed to be the inability of the modern sector to raise its overall share of employment as well as its productivity and average real earnings. The chapter also presents some closing thoughts on the key concepts discussed in the preceding chapters of this book.
