Who Benefits from Promoting Small and Medium Scale Enterprises? Some Empirical Evidence from Ethiopia

Who Benefits from Promoting Small and Medium Scale Enterprises? Some Empirical Evidence from Ethiopia

The Addis Ababa Integrated Housing Development Program aims to tackle the housing shortage and unemployment that prevail in Addis Ababa by deploying and supporting small and medium scale enterprises to construct low-cost housing using technologies...

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Bibliographic Details
Main Authors: Rijkers, Bob, Ruggeri Laderchi, Caterina, Teal, Francis
Format: Policy Research Working Paper
Language:English
Published: World Bank, Washington, DC 2012
Subjects:
ACCESS TO CREDIT
ACCESS TO FINANCE
ACTIVE LABOR
ACTIVE LABOR MARKET
ACTIVE LABOR MARKET PROGRAM
ACTIVE LABOR MARKET PROGRAMS
ADJUSTMENT COSTS
BUSINESS DEVELOPMENT
CAPITAL LABOR RATIO
CAPITAL STOCK
CASUAL WORKER
CASUAL WORKERS
COBB-DOUGLAS PRODUCTION FUNCTION
CONSTANT RETURNS TO SCALE
COOP
CORPORATION
DEFLATORS
DEMOGRAPHIC CHARACTERISTICS
DISCRIMINATION
DISCRIMINATION AGAINST WOMEN
DIVIDENDS
EARNINGS
EARNINGS REGRESSIONS
ECONOMETRIC MODELS
ECONOMETRICS
ECONOMIC DEVELOPMENT
ECONOMIC SURVEYS
ECONOMICS
EDUCATIONAL ATTAINMENT
EDUCATIONAL BACKGROUND
EMPLOYEE
EMPLOYMENT HISTORY
EMPLOYMENT OPPORTUNITIES
EMPLOYMENT PROSPECTS
ENTREPRENEURSHIP
EXCESS DEMAND
EXCLUSION
EXPENDITURES
FARMER
FINANCIAL SUPPORT
FIRM GROWTH
FIRM SIZE
FUTURE RESEARCH
GENDER
GENERAL EQUILIBRIUM
HIGH UNEMPLOYMENT
HOUSEHOLD CHARACTERISTICS
HUMAN CAPITAL
INCOME
INNOVATION
INPUT PRICE
INTERNATIONAL BANK
INTERNATIONAL FINANCE
JOB CREATION
JOB OPPORTUNITIES
JOBS
LABOR DEMAND
LABOR FORCE
LABOR INTENSITY
LABOR MARKET
MEDIUM SCALE ENTERPRISES
MICRO-ENTERPRISE
MICRO-ENTERPRISE DEVELOPMENT
MOTIVATION
OCCUPATION
ORGANIZATIONAL STRUCTURE
OUTPUTS
OVERHEAD COST
PERMANENT WORKERS
PHYSICAL CAPITAL
PRODUCTION FUNCTIONS
PRODUCTION PROCESS
PRODUCTIVITY
PRODUCTIVITY GROWTH
RECEIPT
SELF EMPLOYED
SELF-EMPLOYMENT
SELF-EMPLOYMENT ASSISTANCE
SKILLED PERSONNEL
SMALL FIRMS
SMALL-SCALE ENTERPRISES
SME
SME SUPPORT PROGRAMS
SUBSTITUTION EFFECTS
TOTAL COSTS
TRANSITION ECONOMIES
UNEMPLOYED
UNEMPLOYED WORKERS
UNEMPLOYMENT
UNEMPLOYMENT SPELL
UNSKILLED LABOR
VOCATIONAL EDUCATION
WAGES
WORKER
WORKERS
Online Access:http://documents.worldbank.org/curated/en/2008/05/9474987/benefits-promoting-small-medium-scale-enterprises-some-empirical-evidence-ethiopia
http://hdl.handle.net/10986/6699
Description
Summary:The Addis Ababa Integrated Housing Development Program aims to tackle the housing shortage and unemployment that prevail in Addis Ababa by deploying and supporting small and medium scale enterprises to construct low-cost housing using technologies novel for Ethiopia. The motivation for such support is predicated on the view that small firms create more jobs per unit of investment by virtue of being more labor intensive and that the jobs so created are concentrated among the low-skilled and hence the poor. To assess whether the program has succeeded in biasing technology adoption in favor of labor and thereby contributed to poverty reduction, the impact of the program on technology usage, labor intensity, and earnings is investigated using a unique matched workers-firms dataset, the Addis Ababa Construction Enterprise Survey. The data are representative of all registered construction firms in Addis and were collected specifically for the purpose of analyzing the impact of the program. The authors find that program firms do not adopt different technologies and are not more labor intensive than non-program firms. There is an earnings premium for program participants, who tend to be relatively well-educated, which is heterogeneous and highest for those at the bottom of the earnings distribution.

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