Working Out of Poverty : Job Creation and the Quality of Growth in Africa

This paper explores Africa's economic performance and the creation of jobs over the decade and more since 1995, recognizing that some standard labor concepts are difficult to apply to conditions prevailing in Africa. The intent of the paper is to identify the economic factors behind the more successful outcomes and the options available for improving the quality of growth. The report focuses on several key issues: how has the structure of economic growth and labor demand shaped the job creation process? Does rigidity in African labor markets impede job creation? Have the quality and quantity of the labor supply affected job creation? What policies have been pursued to raise the quality of the African labor force? What does the expanding "informal" sector mean for the labor market and the quality of growth? Is it a route out of poverty or a low-skills trap? Throughout the paper, the focus is on the factors, exogenous and endogenous, that are linked to the outcomes, and the implications that these factors may have for raising the quality of Africa's economic growth. Some countries have reversed many of the vicious cycles underlying Sub- Saharan Africa's generally poor performance on job creation; those countries are highlighted where adequate data are available, and the lessons these experiences offer all stakeholders in meeting the growth and poverty reduction challenges of the future are pointed out. The paper concludes that Africa's record of poor economic performance has in part been an inevitable result of its colonial heritage-the low levels of human capital at independence. It is also a function of the ensuing policies pursued, especially those that led to the debt crisis and the subsequent recession and public sector restructuring. In most countries, these costs have been paid, and the future looks brighter as a result.

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Bibliographic Details
Main Authors: Fox, Louise, Sekkel Gaal, Melissa
Format: Publication biblioteca
Language:English
en_US
Published: Washington, DC : World Bank 2008
Subjects:ACCESS TO CREDIT, ADULT WOMEN, ANNUAL LABOR FORCE GROWTH, AVERAGE WAGES, BALANCE OF PAYMENTS, BANK DATA, BENEFICIARIES, BUSINESS CLIMATES, CALCULATION, CALCULATIONS, CHILD LABOR, CONTRACT ENFORCEMENT, CONTRIBUTION, CREATING JOBS, CREATING OPPORTUNITIES, CROSS-SECTIONAL DATA, CURRICULUM, CUSTOMS CLEARANCE, DEBT, DEBT CRISIS, DEMOGRAPHIC CHANGES, DEMOGRAPHIC FACTORS, DEMOGRAPHIC TRANSITION, DEVELOPMENT POLICY, DIRECT INVESTMENT, DISMISSAL, DISSEMINATION, DOMESTIC MARKETS, DOWNWARD PRESSURE, DRIVERS, EARNING, EARNINGS, ECONOMIC ACTIVITIES, ECONOMIC ACTIVITY, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, EDUCATION PROGRAMS, EDUCATIONAL ATTAINMENT, EDUCATIONAL LEVEL, EDUCATIONAL OPPORTUNITIES, EFFECTIVE POLICIES, EMPLOYEE, EMPLOYMENT, EMPLOYMENT EFFECT, EMPLOYMENT EFFECTS, EMPLOYMENT GROWTH, EMPLOYMENT PERFORMANCE, EPIDEMIC, EXCHANGE RATE, FAMILY MEMBERS, FEMALE LABOR, FEMALE LABOR FORCE, FERTILITY, FERTILITY RATES, FINANCIAL INSTITUTIONS, FINANCIAL TROUBLE, FINDING JOBS, FIRM LEVEL, FIRM SIZE, FIRM SURVEYS, FOREIGN INVESTMENT, FOREIGN WORKERS, FORMAL EDUCATION, FORMAL SECTOR WORKERS, FULL EMPLOYMENT, GROSS DOMESTIC PRODUCT, HIV, HOUSEHOLD CONSUMPTION, HOUSEHOLD ENTERPRISE, HOUSEHOLD INCOME, HOUSEHOLD SURVEY, HOUSEHOLD SURVEYS, HUMAN CAPITAL, INCOME INEQUALITY, INCOME LEVEL, INCOMES, INDIRECT COSTS, INFORMAL ECONOMY, INFORMAL SECTOR, INFORMED CHOICES, INVESTING, INVESTMENT CLIMATE, INVESTMENT CLIMATES, INVESTMENT RISKS, JOB CREATION, JOB LOSS, JOB SECURITY, JOB SEEKERS, JOBS, LABOR COSTS, LABOR DEMAND, LABOR FORCE, LABOR FORCE GROWTH, LABOR FORCE PARTICIPATION, LABOR FORCES, LABOR LAW, LABOR LAWS, LABOR MARKET, LABOR MARKET CONDITIONS, LABOR MARKET INSTITUTIONS, LABOR MARKETS, LABOR POOL, LABOR PRODUCTIVITY, LABOR REGULATION, LABOR REGULATIONS, LABOR SHORTAGES, LABOR STANDARDS, LABOR STATISTICS, LABOR SUPPLIES, LABOR SUPPLY, LABOR UNIONS, LABOR-INTENSIVE PRODUCTION, LABOUR, LEGAL STATUS, LEVEL OF EDUCATION, LIFE EXPECTANCY, LITERACY, LIVING COSTS, LIVING STANDARD, LOW-INCOME, LOW-INCOME COUNTRIES, MACROECONOMIC STABILITY, MINIMUM WAGE, MINIMUM WAGES, NATURAL GAS, NET JOB CREATION, NET JOB LOSSES, NEW JOB, NEW JOBS, OLDER WORKERS, PAYING JOBS, POOR HOUSEHOLDS, POOR INVESTMENT, POPULATION GROWTH RATES, POPULATION INCREASE, POVERTY REDUCTION, PRIMARY EDUCATION, PRIMARY LEVEL, PRIMARY SCHOOL, PRIMARY SCHOOL EDUCATION, PRIVATE ENTERPRISE, PRIVATE INVESTMENT, PRIVATE PROVIDERS, PRIVATE SECTOR, PRIVATE SECTOR WAGE, PRODUCTION FUNCTION, PRODUCTION PROCESSES, PRODUCTION WORKERS, PRODUCTIVITY IMPROVEMENTS, PROGRESS, PUBLIC EMPLOYMENT, PUBLIC SECTOR EMPLOYMENT, PUBLIC SERVICE, PURCHASING POWER, RAPID POPULATION GROWTH, RATE OF GROWTH, RATE OF POPULATION GROWTH, RATE OF RETURN, RATES OF RETURN, REAL WAGES, RECESSION, RIGID LABOR MARKET, RISK PREMIUM, SALARY, SAVINGS, SAVINGS RATES, SECONDARY EDUCATION, SECONDARY SCHOOL, SECONDARY SCHOOLING, SELF-EMPLOYMENT, SERVICE SECTOR, SERVICE SECTORS, SEVERANCE PAY, SKILL PREMIUMS, SKILL SHORTAGE, SKILL SHORTAGES, SKILLED LABOR, SMALL MANUFACTURING, SOCIAL INSURANCE, SOCIAL SECURITY, STABLE JOBS, STAKEHOLDERS, TAX RATES, TECHNICAL EDUCATION, TOTAL COSTS, TOTAL EMPLOYMENT, TOTAL FACTOR PRODUCTIVITY, TOTAL LABOR FORCE, TRADE UNION, TRADE UNIONS, TRAINING INSTITUTIONS, TRANSACTION, UNEMPLOYED, UNEMPLOYMENT, UNEMPLOYMENT PROBLEM, UNEMPLOYMENT RATE, UNION MEMBERSHIP, UNSKILLED WORKERS, URBAN AREAS, URBAN EMPLOYMENT, URBAN MIGRATION, URBAN POPULATION, URBAN UNEMPLOYMENT, URBANIZATION, URBANIZED COUNTRIES, VOCATIONAL COURSES, VOCATIONAL EDUCATION, WAGE DATA, WAGE DIFFERENTIALS, WAGE EFFECT, WAGE EFFECTS, WAGE EMPLOYMENT, WAGE FLOOR, WAGE GAINS, WAGE GAP, WAGE LEVEL, WAGE LEVELS, WOMAN, WORKER, WORKERS, WORKING ADULTS, WORKING AGE, WORKING-AGE POPULATION, WORLD TRADE, YOUNG WOMEN, YOUNG WORKERS, YOUTH UNEMPLOYMENT,
Online Access:http://documents.worldbank.org/curated/en/2008/01/9484379/working-out-poverty-job-creation-quality-growth-africa
http://hdl.handle.net/10986/6434
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Summary:This paper explores Africa's economic performance and the creation of jobs over the decade and more since 1995, recognizing that some standard labor concepts are difficult to apply to conditions prevailing in Africa. The intent of the paper is to identify the economic factors behind the more successful outcomes and the options available for improving the quality of growth. The report focuses on several key issues: how has the structure of economic growth and labor demand shaped the job creation process? Does rigidity in African labor markets impede job creation? Have the quality and quantity of the labor supply affected job creation? What policies have been pursued to raise the quality of the African labor force? What does the expanding "informal" sector mean for the labor market and the quality of growth? Is it a route out of poverty or a low-skills trap? Throughout the paper, the focus is on the factors, exogenous and endogenous, that are linked to the outcomes, and the implications that these factors may have for raising the quality of Africa's economic growth. Some countries have reversed many of the vicious cycles underlying Sub- Saharan Africa's generally poor performance on job creation; those countries are highlighted where adequate data are available, and the lessons these experiences offer all stakeholders in meeting the growth and poverty reduction challenges of the future are pointed out. The paper concludes that Africa's record of poor economic performance has in part been an inevitable result of its colonial heritage-the low levels of human capital at independence. It is also a function of the ensuing policies pursued, especially those that led to the debt crisis and the subsequent recession and public sector restructuring. In most countries, these costs have been paid, and the future looks brighter as a result.