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Services, Jobs, and Economic Development in Africa

Author

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  • Baccini, Leonardo
  • Fiorini, Matteo
  • Sanfilippo, Marco

Abstract

This paper presents data and analyzes the structure of employment in thirteen African economies at the administrative unit level, with a focus on the role of services. We provide two novel pieces of evidence. First, we present a descriptive snapshot of changes in the composition of employment over time and across geographies. This reveals evidence of structural transformation towards services and service-related occupations at sub-national level and provides a fine-grained overview of who works in services and where and how this has changed over time. Second, we provide correlations between services and economic development, using per capita nightlight luminosity as a proxy. We document (a) a strong positive association between high skills services and economic development; (b) substantial heterogeneity across industries within services; and (c) a mediating role of market conditions and technology in the relation between services and economic development. Overall, our work highlights an important role of services activities for employment, skills and economic development in Africa.

Suggested Citation

  • Baccini, Leonardo & Fiorini, Matteo & Sanfilippo, Marco, 2022. "Services, Jobs, and Economic Development in Africa," CEPR Discussion Papers 16924, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:16924
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    Keywords

    Economic development; Structural transformation; Growth; Servicification; Africa; Employment;
    All these keywords.

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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