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The Urban Labour Market During Structural Adjustment: Ethiopia 1990-1997

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  • Pramila Krishnan
  • Tesfaye Gebre Selassie
  • Stefan Dercon

Abstract

The paper examines the effects of reform and structural adjustment on the urban labour market in Ethiopia using a combination of cross-section and panel data based on surveys conducted both pre- and post- reform. During this period Ethiopia has seen impressive growth in GDP but little in the way of private investment. Meanwhile, the labour market has remained remarkably unresponsive to the pressures of reform despite the growing queues of the educated unemployed. While the public sector has contracted over the period, real wages have been re-adjusted to almost pre-reform levels; furthermore, real wages have grown in the private sector, while returns to education have remained largely unaffected.

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Bibliographic Info

Paper provided by Katholieke Universiteit Leuven, Centrum voor Economische Studiën in its series Center for Economic Studies - Discussion papers with number ces9817.

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Date of creation: Apr 1998
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Handle: RePEc:ete:ceswps:ces9817

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References

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  1. Krishnan, Pramila, 1996. "Family Background, Education and Employment in Urban Ethiopia," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 58(1), pages 167-83, February.
  2. Collier, Paul & Gunning, Jan Willem, 1995. "War, peace and private portfolios," World Development, Elsevier, vol. 23(2), pages 233-241, February.
  3. Griliches, Zvi, 1977. "Estimating the Returns to Schooling: Some Econometric Problems," Econometrica, Econometric Society, vol. 45(1), pages 1-22, January.
  4. Ohtani, Kazuhiro & Kobayashi, Masahito, 1986. "A Bounds Test for Equality Between Sets of Coefficients in Two Linear Regression Models Under Heteroscedasticity," Econometric Theory, Cambridge University Press, vol. 2(02), pages 220-231, August.
  5. Bennell, Paul, 1996. "Rates of return to education: Does the conventional pattern prevail in sub-Saharan Africa?," World Development, Elsevier, vol. 24(1), pages 183-199, January.
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Cited by:
  1. Pieter Serneels, 2004. "The Nature of Unemployment in Urban Ethiopia," Development and Comp Systems 0409042, EconWPA.
  2. Richard Akresh & Leonardo Lucchetti & Harsha Thirumurthy, 2010. "Wars and Child Health: Evidence from the Eritrean-Ethiopian Conflict," HiCN Working Papers 89, Households in Conflict Network.
  3. McCormick, Barry & Wahba, Jackline, 2000. "Did public wage premiums fuel agglomeration in LDCs?," Discussion Paper Series In Economics And Econometrics 0020, Economics Division, School of Social Sciences, University of Southampton.
  4. White, Howard & Leavy, Jennifer, 2000. "Economic Reform and Economic Performance: Evidence from 20 Developing Countries," MPRA Paper 6594, University Library of Munich, Germany.
  5. Massimiliano Calì, 2012. "Trade Liberalisation Does Not Always Raise Wage Premia: Evidence from Ugandan Districts," SERC Discussion Papers 0114, Spatial Economics Research Centre, LSE.

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