International Journal of Economics, Commerce and Management United Kingdom Vol. III, Issue 1, Jan 2015 Licensed under Creative Common Page 1 http://ijecm.co.uk/ ISSN 2348 0386 WAGES DETERMINATION IN POST HYPER INFLATIONARY ZIMBABWE Shynet Chivasa Faculty of Commerce, Lupane State University, Bulawayo, Zimbabwe schivasa@lsu.ac.zw, shynet.chivasa5@gmail.com Christine Ivy Hurasha Faculty of Commerce, Department of Accounting and Information Systems Great Zimbabwe University, Zimbabwe churasha@gmail.com Abstract The study examines empirically the determinants of real wages in the manufacturing sector in Zimbabwe by employing a macroeconomic real wage function. The paper presents some quantitative results on the determination of the manufacturing real wage. It examines the extent to which the government, profits, past inflation (price), output, trade union and wages of other sectors affect the real wage of the manufacturing sector. The results indicate some relationship between real wages and output, and wages and past inflation. Using an error correction model (ECM) the research found that real wages are an increasing function of real wages of other sectors, output, profit and a decreasing function of the past inflation level and trade union militants was found to be insignificant. This could be because of the inelastic labour demand and a very elastic supply curve. Keywords: Real wages, manufacturing Sector, hyperinflationary, error correction model, macroeconomics