2013-11-01
The dynamics of job creation and job destruction in an african economy: Evidence from ethiopia
Publication
Publication
Journal of African Economies , Volume 22 - Issue 5 p. 651- 692
A growing share of manufacturing in GDP and in employment is a common feature observed in successful developing countries. Manufacturing, however, has not been a major source of employment in Ethiopia and in other Sub-Saharan African countries. This paper relies on a unique censusbased panel data covering the period 1996-2007 to analyse the micro-dynamics of aggregate employment changes. The analysis shows that the weak employment performance of Ethiopian manufacturing is not due to limited job creation but a consequence of simultaneous offsetting processes of job creation and destruction.We find strong evidence of intra-industry job mobility and attribute a substantial proportion of job creation and destruction to firm entry and exit. However, jobs created by small firms tend to be transitory and there has been a re-allocation of jobs from small to larger firms during periods of faster aggregate net employment growth. Overall, the evidence suggests thatemployment growth and job re-allocation are not necessarily restrained by labour laws and regulations.
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doi.org/10.1093/jae/ejt006, hdl.handle.net/1765/56584 | |
Journal of African Economies | |
Shiferaw, A., & Bedi, A. S. (2013). The dynamics of job creation and job destruction in an african economy: Evidence from ethiopia. Journal of African Economies, 22(5), 651–692. doi:10.1093/jae/ejt006 |