Wage Determination in the Domestic Services Sector in Kahawa and Githurai Estates in Kiambu County, Kenya
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Date
2018-09
Authors
Okemwa, Josephat Mongare
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
Determination and compensation of wages are concepts whose determinants may not
necessarily be the same. Different sectors have a stipulated system of pay whereby
workers are paid depending on their ranks or job grades, while others use individual
characteristics such as education level, sex and work experience. In Kenya, minimum
wage determination and fixing form an integral approach of wage setting in the domestic
services sector aimed at protecting the domestic workers from exploitation. Despite the
Government’s regulations and guidelines on minimum wage, domestic services sector
workers who are otherwise performing almost the same work that requires the same skills
in the same location area are paid different rates of wages as opposed to the set minimum
wages. While many theories regarding wage compensation have been proposed,
empirical studies on wage determination in the domestic services sector is scarce. The
study therefore sought to establish underlying factors that influence wage determination
in the domestic service sector in Kahawa and Githurai estates in Kiambu County, Kenya.
Specific objectives were: To determine the effect of education level in years of schooling;
work experience; type of residence of a domestic worker (rural or urban); sex of domestic
workers and domestic worker’s dwelling on wages in the domestic service sector in
Kahawa and Githurai estates. The study used a descriptive cross-sectional survey design
which sought to give the quantitative relationship between the wage and its determinants.
The target population for this study included domestic workers and their employers in
Kahawa and Githurai estates. Primary data were collected by interviewers using
questionnaires where 367 domestic workers were randomly selected and interrogated.
The study used open-ended and closed ended questions to collect data. The collected data
were coded and then quantitatively analysed using robust regression. The results of the
analysis indicate that education level in years of schooling, work experiences in years,
type of residence (rural or urban) are important factors in wage determination in the
domestic services sector. Sex and dwelling of a domestic worker were found not
important factors in determining wages. The implications of the findings suggest that in
an effort to create fairness in the domestic services sector, policies and strategies that are
anchored in the social economic characteristics of a domestic worker as well as human
capital investment should be considered in determining remuneration of domestic
workers a part from minimum wages which is generally defined and regulated by state
law.
Description
A Research Project Submitted to the Department of
Economic Theory in Partial Fulfilment of the Requirements
For the Award of the Degree of Master of Economics (Policy
And Management) of Kenyatta University