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

Author

Listed:
  • 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.

Suggested Citation

  • Damien Echevin & Fabrice Murtin, 2007. "What Determines Productivity in Senegal? Sectoral Disparities and the Dual Labor," Cahiers de recherche 07-15, Departement d'Economique de l'École de gestion à l'Université de Sherbrooke, revised 2008.
  • Handle: RePEc:shr:wpaper:07-15
    as

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    File URL: http://gredi.recherche.usherbrooke.ca/wpapers/GREDI-0715.pdf
    File Function: Second version, 2008
    Download Restriction: no

    References listed on IDEAS

    as
    1. Daniel Cohen & Marcelo Soto, 2007. "Growth and human capital: good data, good results," Journal of Economic Growth, Springer, vol. 12(1), pages 51-76, March.
    2. Antonio Ciccone & Giovanni Peri, 2005. "Long-Run Substitutability Between More and Less Educated Workers: Evidence from U.S. States, 1950-1990," The Review of Economics and Statistics, MIT Press, vol. 87(4), pages 652-663, November.
    3. Card, David, 2001. "Estimating the Return to Schooling: Progress on Some Persistent Econometric Problems," Econometrica, Econometric Society, vol. 69(5), pages 1127-1160, September.
    Full references (including those not matched with items on IDEAS)

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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.

    More about this item

    Keywords

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

    JEL classification:

    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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