Distribution of wages in GDP

In this research work, we are interested in studying the determinants of the share of wages in GDP. The study concerns a panel of 51 African countries and covers the period between 2006 and 2017, using two estimation methods: fixed-effects method and generalized method of moments (GMM).The results of the study reveal that total factor productivity, foreign direct investment, the unemployment rate and capital intensity have a non-linear effect on the wage share. Indeed, if we take the example of total factor productivity, the results reveal that this variable has a replacement effect in the short term and an offsetting effect in the long term. The results also show that the interest rate significantly increases the wage share, while growth, trade openness and higher school enrolment rates have a negative effect.Similarly, we found that the impact of total factor productivity becomes more significant through its interaction with the higher education rate, the unemployment rate and the share of ICT imports in GDP.