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.
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. |
---|