2) Rapid population growth exacerbates the excess supply of labour in Africa (Fox et al. 2013), offsetting the effects of output growth. To some extent, however, Africa’s failure to experience a demographic transition reflects the lack of structural transformation so cause and effect are difficult to distinguish. 3) wages could be driven up by Dutch Disease effects in some natural-resource abundant countries driving up wages, but this cannot explain why informal sector labour incomes are so low relative to formal-sector wages. Moreover, natural resource abundance does not necessarily preclude labour-intensive manufacturing exports, as Malaysia and Indonesia have shown (Fox et al. 2013).