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| Title: | The dynamics of job creation and job destruction in an African economy: evidence from Ethiopia |
| Authors: | Shiferaw, Admasu Bedi, Arjun S. |
| Year: | 2013 |
| Periodical: | Journal of African Economies (ISSN 0963-8024) |
| Volume: | 22 |
| Issue: | 5 |
| Pages: | 651-692 |
| Language: | English |
| Geographic term: | Ethiopia |
| Subjects: | employment creation labour market industry unemployment |
| External link: | https://doi.org/10.1093/jae/ejt006 |
| Abstract: | 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 unique census-based 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. The authors 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 that employment growth and job re-allocation are not necessarily restrained by labour laws and regulations. App., bibliogr., notes, ref., sum. [Journal abstract] |
