ABSTRACT
There has been a myth established in the literature of sub-Saharan economic development that the artificially high price of labor in the formal sector of its economies has been a major problem for the development of industry and other productive activities located in this sector. A supplementary complaint has been that labor legislation has not only helped to maintain high wage levels for the “labor aristocracy” in this sector, but has introduced rigidity in the use of labor by rigid rules protecting the security of tenure of labor.
