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The urban labour market during structural adjustment: Ethiopia 1990-1997

  • Pramila Krishnan
  • Tesfaye Gebre Selassie
  • Stefan Dercon

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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Paper provided by Centre for the Study of African Economies, University of Oxford in its series CSAE Working Paper Series with number 1998-09.

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Date of creation: 1998
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Handle: RePEc:csa:wpaper:1998-09
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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. Griliches, Zvi, 1977. "Estimating the Returns to Schooling: Some Econometric Problems," Econometrica, Econometric Society, vol. 45(1), pages 1-22, January.
  3. Collier, Paul & Gunning, Jan Willem, 1995. "War, peace and private portfolios," World Development, Elsevier, vol. 23(2), pages 233-241, February.
  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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