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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:The dynamics of job creation and job destruction in an African economy: evidence from Ethiopia
Authors:Shiferaw, AdmasuISNI
Bedi, Arjun S.ISNI
Periodical:Journal of African Economies (ISSN 0963-8024)
Geographic term:Ethiopia
Subjects:employment creation
labour market
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]