Short-Run Welfare Impacts of Factory Jobs
Many countries in Sub-Saharan Africa face a rapidly growing population and labor force in demand of good jobs. Ethiopia has reacted to this challenge by prioritizing large-scale industrial development through the construction of industrial parks to drive exports, job creation, and growth. However, the African experience with industrial parks so far has been mixed. To provide further evidence on the welfare effects of factory jobs in Ethiopia, this study conducted an experiment that facilitated the job application and onboarding process for young female job seekers at three factories. Using panel data from 827 applicants, the study finds that the extra support increased the likelihood of being employed in the treatment group in the short run, largely driven by wage and factory work. Further, the intervention raised reported monthly income by nearly 30 percent in the treatment group. However, the study also finds an adverse impact on health outcomes as well as downward adjustments of applicants' expectations and perceptions of the earnings potential and desirability of factory work in response to the treatment.
| Main Authors: | , , |
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| Format: | Working Paper biblioteca |
| Language: | English |
| Published: |
World Bank, Washington, DC
2020-07
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| Subjects: | INDUSTRIAL PARKS, FEMALE EMPLOYMENT, FEMALE LABOR FORCE PARTICIPATION, FACTORY JOB, GENDER INNOVATION LAB, AFRICA GENDER POLICY, WOMEN AND EMPLOYMENT, EXPORTS, JOB ASSISTANCE, WOMEN AND YOUTH EMPLOYMENT, WOMEN AND PRIVATE SECTOR DEVELOPMENT, |
| Online Access: | http://documents.worldbank.org/curated/en/400881595340716051/Short-Run-Welfare-Impacts-of-Factory-Jobs-Experimental-Evidence-from-Ethiopia https://hdl.handle.net/10986/34171 |
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| Summary: | Many countries in Sub-Saharan Africa
face a rapidly growing population and labor force in demand
of good jobs. Ethiopia has reacted to this challenge by
prioritizing large-scale industrial development through the
construction of industrial parks to drive exports, job
creation, and growth. However, the African experience with
industrial parks so far has been mixed. To provide further
evidence on the welfare effects of factory jobs in Ethiopia,
this study conducted an experiment that facilitated the job
application and onboarding process for young female job
seekers at three factories. Using panel data from 827
applicants, the study finds that the extra support increased
the likelihood of being employed in the treatment group in
the short run, largely driven by wage and factory work.
Further, the intervention raised reported monthly income by
nearly 30 percent in the treatment group. However, the study
also finds an adverse impact on health outcomes as well as
downward adjustments of applicants' expectations and
perceptions of the earnings potential and desirability of
factory work in response to the treatment. |
|---|