Structural Change in Ethiopia : An Employment Perspective

This paper investigates whether the Ethiopian economy is undergoing a virtuous process of structural change. In particular, it assesses the relative contributions of within-sector and between-sector productivity to output per capita growth. Based on data disaggregated into eight sectors for the period 1996-2011, the analysis suggests that the structure of output has changed considerably -- predominantly from agriculture to services -- but changes in the composition of employment have lagged behind. Labor productivity growth has been strong across most sectors, albeit mainly driven by within-sector productivity improvements. Nonetheless, the pace of structural change is accelerating and its relative contribution to output growth is increasing.

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Bibliographic Details
Main Author: Martins, Pedro
Language:English
en_US
Published: World Bank, Washington, DC 2014-01
Subjects:ACCOUNTING, AGE GROUP, AGE GROUPS, AGGREGATE PRODUCTIVITY, AGRICULTURAL OUTPUT, AGRICULTURE, ANNUAL PRODUCTIVITY GROWTH, AVERAGE PRODUCTIVITY, AVERAGE PRODUCTIVITY GROWTH, AVERAGE WAGE, AVERAGE WAGES, BLOG, BUSINESS ACTIVITIES, BUSINESS SERVICES, COMMERCE, DEMOGRAPHIC EFFECTS, DEVELOPMENT POLICY, DEVELOPMENT STRATEGIES, DRIVERS, ECONOMIC ACTIVITIES, ECONOMIC ACTIVITY, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, ECONOMIC OUTLOOK, ECONOMIC PERFORMANCE, ECONOMIC RESEARCH, ECONOMIC SECTOR, ECONOMIC SECTORS, ECONOMIC THEORY, ELASTICITY, ELECTRICITY, EMPLOYERS, EMPLOYMENT, EMPLOYMENT CREATION, EMPLOYMENT DYNAMICS, EMPLOYMENT GROWTH, EMPLOYMENT INCREASES, EMPLOYMENT INDICATORS, EMPLOYMENT OPPORTUNITIES, EMPLOYMENT POLICIES, EMPLOYMENT RATE, EMPLOYMENT RATES, EMPLOYMENT RELATIONSHIP, EMPLOYMENT SHARE, EMPLOYMENT TERMS, EXPORTS, FEMALE EMPLOYMENT, FINANCIAL SERVICES, GDP, GDP PER CAPITA, GLOBALIZATION, GOVERNMENT SERVICES, GROSS VALUE, GROWTH PATH, GROWTH PATHS, GROWTH RATE, HOUSEHOLD INCOME, HOUSEHOLD SURVEY, HOUSEHOLD SURVEYS, INNOVATION, INSURANCE, INTERNATIONAL LABOUR OFFICE, INTERNATIONAL LABOUR ORGANISATION, JOB GENERATION, JOB SECURITY, JOBS, LABOR EFFICIENCY, LABOR FORCE, LABOR FORCE GROWTH, LABOR FORCE PARTICIPATION, LABOR MARKET, LABOR PRODUCTIVITIES, LABOR PRODUCTIVITY, LABOR PRODUCTIVITY GROWTH, LABOR REALLOCATION, LABOR SHARE, LABOR SUPPLY, LABOR-INTENSIVE GROWTH, LABOUR, LABOUR MARKETS, LABOUR OFFICE, LABOUR PRODUCTIVITY, LIVING STANDARDS, MANUFACTURING, MANUFACTURING WAGE, MARKET SHARES, MATHEMATICS, NATURAL RESOURCES, NOMINAL WAGES, OCCUPATION, OPEN ACCESS, OPEN UNEMPLOYMENT, OUTPUT PER CAPITA, PERFORMANCES, PREVIOUS DRAFT, PRIMARY EDUCATION, PRIMARY SOURCE, PRIVATE EMPLOYMENT, PRIVATE SECTOR, PRIVATE SECTOR WORKERS, PRODUCTIVE ACTIVITIES, PRODUCTIVE EMPLOYMENT, PRODUCTIVITY DATA, PRODUCTIVITY GAINS, PRODUCTIVITY IMPROVEMENTS, PRODUCTIVITY INCREASES, PRODUCTIVITY LEVELS, PRODUCTIVITY PERFORMANCE, PROPERTY RIGHTS, PUBLIC ADMINISTRATION, PUBLIC EMPLOYMENT, PUBLIC SECTOR EMPLOYMENT, PUBLIC SECTOR JOBS, PUBLIC SECTOR WORKERS, PUBLIC UTILITIES, PURCHASING POWER, RESULTS, RETAIL TRADE, SALARIED EMPLOYEES, SERVICE SECTOR, SKILLED LABOR, SOCIAL DEVELOPMENT, STRUCTURAL CHANGE, SURPLUS LABOR, TECHNOLOGICAL INNOVATION, TIME PERIOD, TIME PERIODS, TOTAL EMPLOYMENT, TOTAL OUTPUT, TOTAL WORKERS, UNDEREMPLOYMENT, UNEMPLOYED, UNEMPLOYMENT, UNEMPLOYMENT RATE, UNEMPLOYMENT STATISTICS, UNPAID FAMILY WORKERS, URBAN WORKERS, USER, USES, VALUE ADDED, WAGE DATA, WAGE EMPLOYMENT, WAGE LEVELS, WEB, WORKER, WORKERS, YOUTH EMPLOYMENT, YOUTH UNEMPLOYMENT,
Online Access:http://documents.worldbank.org/curated/en/2014/01/18832342/structural-change-ethiopia-employment-perspective
https://hdl.handle.net/10986/16829
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Summary:This paper investigates whether the Ethiopian economy is undergoing a virtuous process of structural change. In particular, it assesses the relative contributions of within-sector and between-sector productivity to output per capita growth. Based on data disaggregated into eight sectors for the period 1996-2011, the analysis suggests that the structure of output has changed considerably -- predominantly from agriculture to services -- but changes in the composition of employment have lagged behind. Labor productivity growth has been strong across most sectors, albeit mainly driven by within-sector productivity improvements. Nonetheless, the pace of structural change is accelerating and its relative contribution to output growth is increasing.