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What Determines Productivity in Senegal? Sectoral Disparities and the Dual Labor

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Author Info

  • Damien Echevin

    ()
    (GREDI, Département d'économique, Université de Sherbrooke)

  • Fabrice Murtin

    ()
    (LSE, London; PSE and CREST, GREDI)

Abstract

Growth of the informal sector of the Senegalese economy may result in a productivity slowdown and could induce a surge in inequality and poverty. The production process is similar for some subsectors of the informal sector and those of the formal one. But there is evidence that the economy is deeply cleaved, between productive and non productive firms in the informal sector and voluntary and involuntary jobs on the labor market that proves to be dual. Education externalities are significant in the informal sector. The differences in human and physical capital account for about two thirds of the output gap.

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File URL: http://gredi.recherche.usherbrooke.ca/wpapers/GREDI-0715.pdf
File Function: Second version, 2008
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Bibliographic Info

Paper provided by Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke in its series Cahiers de recherche with number 07-15.

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Length: 38 pages
Date of creation: 2007
Date of revision: 2008
Handle: RePEc:shr:wpaper:07-15

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Keywords: : formal and informal sectors; productivity; output gap; externalities; Senegal;

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References

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  1. Daniel Cohen & Marcelo Soto, 2001. "Growth and Human Capital: Good Data, Good Results," OECD Development Centre Working Papers 179, OECD Publishing.
  2. Antonio Ciccone & Giovanni Peri, 2004. "Long-run substitutability between more and less educated workers: Evidence from U.S. States 1950-1990," Economics Working Papers 764, Department of Economics and Business, Universitat Pompeu Fabra.
  3. Card, David, 2001. "Estimating the Return to Schooling: Progress on Some Persistent Econometric Problems," Econometrica, Econometric Society, vol. 69(5), pages 1127-60, September.
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Cited by:
  1. Diagne, Youssoupha S & Thiaw, Kalidou, 2008. "Fiscalité et secteur informel au Sénégal
    [Informal sector and tax compliance in Senegal]
    ," MPRA Paper 54867, University Library of Munich, Germany.

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