THE INTERACTION BETWEEN THE INDIGENOUS AND THE MONEY ECONOMIES: THE LABOUR MARKET
IN the preceding chapter, an hypothesis was advanced con- cerning the relationship between the indigenous and money economies. It was there argued on theoretical grounds that the indigenous economy might reshape the form of the expan- sion process through its role as a supplier of labour to the money economy. In the early stages of growth, this influence would be slight but, with the continued expansion of the money economy, it could become important. This stage would be reached when the supply of labour from the indigenous economy was no longer perfectly elastic: i.e. the situation which has been des- cribed as quasi-full employment. At that point -- if the indi- genous economy could still function along its traditional lines -- a further withdrawal of male labour from its ranks could not be accomplished without a reduction in agricultural output. A readjustment in the former pattern of relationships between the money and the indigenous economies would then be required.
It is now appropriate to make an empirical investigation of the labour market in Central Africa to test the hypothesis which has been advanced and to establish whether or not the condi- tions necessary to satisfy the criteria of economic development have been fulfilled. Several variables are important for this analysis. First, the trends in the volume of employment of indigenous labour must be examined. The composition of the labour force must then be scrutinized to determine the areas from which workers are drawn. Further, an examination must be made of wage rates and their variation as the volume of employment has changed. It will be recalled that the theoretical discussion focused on the real wage as the significant factor in the determination of the quantity of wage labour which the indigenous economy would be prepared to offer. The analysis
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Publication Information: Book Title: The Economy of British Central Africa: A Case Study of Economic Development in a Dualistic Society. Contributors: William J. Barber - author. Publisher: Stanford University Press. Place of Publication: Stanford, CA. Publication Year: 1961. Page Number: 192.
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