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The Nature of Unemployment among Young Men in Urban Ethiopia

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  • Pieter Serneels

Abstract

This paper investigates the nature of unemployment among young men in urban Ethiopia and finds that it is concentrated among relatively well-educated first-time job seekers who aspire to a public sector job and spend on average close to four years in unemployment. This is consistent with a segmented labor market model where youngsters queue in unemployment for a good job, as confirmed by an empirical test of the theoretical prediction. We observe a negative (causal) relationship between household welfare and both the incidence and duration of unemployment, indicating that unemployment is concentrated among the relatively worse off urban households, which from a national perspective represent the middle classes, and find suggestive evidence that part of this effect is due to malnutrition during childhood. Job search through social networks is only effective after one has become unemployed, suggesting that networks provide insurance only after exposure to the risk. Copyright � 2007 The Author; Journal compilation � 2007 Blackwell Publishing Ltd.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Review of Development Economics.

Volume (Year): 11 (2007)
Issue (Month): 1 (02)
Pages: 170-186

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Handle: RePEc:bla:rdevec:v:11:y:2007:i:1:p:170-186

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Cited by:
  1. Chaudhuri, Sarbajit & Banerjee, Dibyendu, 2009. "Foreign Capital Inflow, Skilled-Unskilled Wage Inequality and Unemployment of Unskilled Labour in a Fair Wage Model," MPRA Paper 18004, University Library of Munich, Germany.
  2. Aysit Tansel & H.Mehmet Tasçi, 2010. "Hazard Analysis Of Unemployment Duration By Gender In A Developing Country: The Case Of Turkey," Working Papers 2010/6, Turkish Economic Association.
  3. Pieter Serneels, 2004. "Explaining Non-Negative Duration Dependence Among the Unemployed," Development and Comp Systems 0409013, EconWPA.
  4. Pieter Serneels, 2002. "The added worked effect and intra household aspects of unemployment," CSAE Working Paper Series 2002-14, Centre for the Study of African Economies, University of Oxford.
  5. Pieter Serneels, 2008. "Unemployment duration, job search and labour market segmentation.� Evidence from urban Ethiopia," Economics Series Working Papers CSAE WPS/2008-17, University of Oxford, Department of Economics.
  6. Chaudhuri, Sarbajit & Banerjee, Dibyendu, 2009. "Foreign Capital, National Welfare and Unemployment in a Fair Wage Model," MPRA Paper 18005, University Library of Munich, Germany.
  7. Chaudhuri, Sarbajit & Banerjee, Dibyendu, 2010. "FDI in Agricultural Land, Welfare and Unemployment in a Developing Economy," MPRA Paper 23488, University Library of Munich, Germany.
  8. Chaudhuri, Sarbajit, 2010. "Economic recession, demand constraint and labour markets in a developing economy," MPRA Paper 27433, University Library of Munich, Germany.
  9. Turnovsky, Stephen J. & Basher, Md.A., 2009. "Fiscal policy and the structure of production in a two-sector developing economy," Journal of Development Economics, Elsevier, vol. 88(2), pages 205-216, March.
  10. Chaudhuri, Sarbajit & Banerjee, Dibyendu, 2008. "Fair Wage Hypothesis, International Factor Mobility and Skilled-Unskilled Wage Inequality in a Developing Economy," MPRA Paper 9303, University Library of Munich, Germany.
  11. Dorothée Boccanfuso & Alexandre Larouche & Mircea Trandafir, 2011. "Quality of higher education and the labor market in developing countries: Evidence from an education reform in Senegal," Cahiers de recherche 11-17, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke, revised May 2012.
  12. Chaudhuri, Sarbajit, 2011. "Economic recession, skilled unemployment and welfare," Economic Modelling, Elsevier, vol. 28(3), pages 1435-1440, May.

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