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Local and Personal Networks in Employment and the Development of Labor Markets:Evidence from the Cut Flower Industry in Ethiopia

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Author Info

  • Yukichi Mano

    (Foundation for Advanced Studies on International Development
    National Graduate Institute for Policy Studies)

  • Takashi Yamano

    (Foundation for Advanced Studies on International Development
    National Graduate Institute for Policy Studies)

  • Aya Suzuki

    (Foundation for Advanced Studies on International Development
    National Graduate Institute for Policy Studies)

  • Tomoya Matsumoto

    (National Graduate Institute for Policy Studies)

Abstract

We examine the roles of local and personal networks in the employment process and the emergence and development of the labor market in Ethiopia’s growing cut flower industry. Using primary survey data of 320 workers randomly sampled from all 64 farms, we find that workers who were recruited informally using the social ties were paid less than the formally-recruited workers at hiring. However, these workers quickly increased their productivity, and the effect of social ties on wages disappeared over time. Further, we find that the development of labor market for this newly-emerged industry took place particularly within the industrial clusters (100 words).

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Bibliographic Info

Paper provided by National Graduate Institute for Policy Studies in its series GRIPS Discussion Papers with number 10-29.

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Length: 38 pages
Date of creation: Jan 2011
Date of revision:
Handle: RePEc:ngi:dpaper:10-29

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Keywords: Labor; Market; Cluster; Cut Flower; Ethiopia; Africa;

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References

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Citations

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Cited by:
  1. Szirmai, Adam & Gebreeyesus, Mulu & Guadagno, Francesca & Verspagen, Bart, 2013. "Promoting productive employment in Sub-Saharan Africa: A review of the literature," MERIT Working Papers 062, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  2. Mano, Yukichi & Suzuki, Aya, 2013. "Measuring Agglomeration Economies: The Case of the Ethiopian Cut Flower Industry," Discussion Papers 2013-04, Graduate School of Economics, Hitotsubashi University.
  3. Mano, Yukichi & Suzuki, Aya, 2013. "Industrial Development through Takeovers and Exits: the Case of the Cut Flower Exporters in Ethiopia," Discussion Papers 2013-05, Graduate School of Economics, Hitotsubashi University.
  4. Caria, Antonia Stefano & Hassen, Ibrahim Worku, 2013. "The formation of job referral networks: Experimental evidence from ubran Ethiopia:," IFPRI discussion papers 1282, International Food Policy Research Institute (IFPRI).
  5. KUEPIE Mathias & TENIKUE Michel & WALTHER Olivier, 2014. "Small businesses performance in West African border regions: Do social networks pay off?," CEPS/INSTEAD Working Paper Series 2014-06, CEPS/INSTEAD.
  6. Girum Abebe & Tetsushi Sonobe, 2012. "Management Practices, Self-Selection into Management Training Participation, and Training Effects in the Garment Industry in Ethiopia," GRIPS Discussion Papers 11-23, National Graduate Institute for Policy Studies.

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