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Policy Options to support the Rural Job Opportunity Creation Strategy in Ethiopia

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Abstract

In 2017, the Ministry of Agriculture and Natural Resources of Ethiopia adopted the Rural Job Opportunity Creation Strategy (RJOCS) to address a lack of job opportunities in rural areas, and related effects such as migration to urban areas and poverty. This report assesses the likely effects of six policy options, in terms of jobs opportunity creation and key macroeconomic indicators. It employs a dynamic Computable General Equilibrium (CGE) model developed by the Joint Research Centre (JRC) tailored to the Ethiopian context. The analysis of the Ethiopian economy, through multipliers based on a specifically developed database, shows that livestock has the greatest employment generation capacity, followed by cash crops, food crops and agri-food industry. This means that policies focusing on rural and agri-food sectors should have great potential to create job opportunities. All scenarios show the capacity of the Ethiopian agriculture and food industry to generate job opportunities and improve conditions for workers and their families, with particularly positive effects under the scenarios supporting agroparks and developing workers’ skills through education.

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  • Pierre Boulanger & Emanuele Ferrari & Alfredo Mainar Causape & Martina Sartori & Mohammed Beshir & Kidanemariam Hailu & Solomon Tsehay, 2019. "Policy Options to support the Rural Job Opportunity Creation Strategy in Ethiopia," JRC Research Reports JRC117916, Joint Research Centre.
    • Handle: RePEc:ipt:iptwpa:jrc117916
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    Keywords

    CGE; Ethiopia; jobs; Agricultural policy;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models

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