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CHAPTER IX

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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