How Do Cities in Ethiopia Create Jobs?
This paper reviews city-based industrialization across Ethiopia to understand (a) its importance in driving net job creation, and (b) the factors that determine the success of high-growth industries and cities. The focus of the analysis is on firms, industries, and cities in Ethiopia that create and sustain jobs. The analysis finds that much of new job creation is found in emerging cities, although capital intensity in production is also increasing. As in other countries, 97 percent of new jobs are created by large firms, and it is incumbents and not new entrants that contribute to initial and sustained increases in employment. Agglomeration economies, better business environment, and access to better infrastructure are factors that matter, albeit differently, depending on firms' size, life-cycle, and rate of growth.
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| Format: | Working Paper biblioteca |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2016-10
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| Subjects: | jobs, agglomeration, industrialization, urban development, cities, job creation, business environment, infrastructure, firm life-cycle, |
| Online Access: | http://documents.worldbank.org/curated/en/2016/10/26872353/cities-ethiopia-create-jobs https://hdl.handle.net/10986/25311 |
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| Summary: | This paper reviews city-based
industrialization across Ethiopia to understand (a) its
importance in driving net job creation, and (b) the factors
that determine the success of high-growth industries and
cities. The focus of the analysis is on firms, industries,
and cities in Ethiopia that create and sustain jobs. The
analysis finds that much of new job creation is found in
emerging cities, although capital intensity in production is
also increasing. As in other countries, 97 percent of new
jobs are created by large firms, and it is incumbents and
not new entrants that contribute to initial and sustained
increases in employment. Agglomeration economies, better
business environment, and access to better infrastructure
are factors that matter, albeit differently, depending on
firms' size, life-cycle, and rate of growth. |
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