Mobility and Earnings in Ethiopia's Urban Labor Markets: 1994-2004

An analysis of panel data on individuals in a random selection of urban households in Ethiopia reveals large, sustained, and unexplained earnings gaps between public and private, and formal and informal sectors over the period 1994-2004. The author...

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Main Authors: Bigsten, Arne, Mengistae, Taye, Shimeles, Abebe
Format: Policy Research Working Paper
Language:English
Published: World Bank, Washington, DC 2012
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2007/03/7459297/mobility-earnings-ethiopias-urban-labor-markets-1994-2004
http://hdl.handle.net/10986/7237
id okr-10986-7237
recordtype oai_dc
spelling okr-10986-72372021-04-23T14:02:33Z Mobility and Earnings in Ethiopia's Urban Labor Markets: 1994-2004 Bigsten, Arne Mengistae, Taye Shimeles, Abebe AGE GROUP AGE GROUPS BARRIERS TO ENTRY DOMESTIC WORKERS EMPLOYEE EMPLOYERS EMPLOYMENT EMPLOYMENT STATUS ENTRY BARRIERS EXOGENOUS VARIABLES FORMAL SECTOR WAGE FORMAL SECTOR WORKERS HUMAN CAPITAL INFORMAL EMPLOYMENT INFORMAL SECTOR INFORMAL SECTOR WORKER INFORMAL SECTOR WORKERS JOB LOSS JOB LOSSES JOB SEARCH JOBS LABOR FORCE LABOR MARKET LABOR MARKET INDICATORS LABOR MARKET SEGMENTATION LABOR MARKETS LABOR MOBILITY LABOR REGULATION LABORERS MARKET STRUCTURE MARKET STUDIES OCCUPATION OPEN UNEMPLOYMENT PRICE RATIONING PRIVATE COMPANIES PRIVATE COMPANY PRIVATE FIRM PRIVATE FIRMS PRIVATE SECTOR PRIVATE SECTOR EMPLOYEES PRIVATE SECTOR JOB PRIVATE SECTOR JOBS PRIVATE SECTOR WAGE PRIVATE SECTOR WORKER PRIVATE SECTOR WORKERS PRIVATE SECTORS PUBLIC SECTOR EMPLOYEES PUBLIC SECTOR EMPLOYMENT PUBLIC SECTOR JOB PUBLIC SECTOR JOBS PUBLIC SECTOR WORKERS SALES SELF EMPLOYED SELF EMPLOYMENT SELFEMPLOYMENT SKILLED WORKERS SMALL BUSINESSES UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT RATE WAGE DIFFERENTIALS WAGE EMPLOYMENT WAGE PREMIUMS WAGE SECTOR WORK IN PROGRESS WORKER WORKERS WORKING WORKING MOTHERS An analysis of panel data on individuals in a random selection of urban households in Ethiopia reveals large, sustained, and unexplained earnings gaps between public and private, and formal and informal sectors over the period 1994-2004. The authors have no formal evidence whether these gaps reflect segmentation of the labor market along either of these divides. In other words, they cannot show whether they are at least in part due to impediments to entry in the higher wage sector. But they do have evidence that, if segmentation explains any part of the observed earnings gaps, then it could only have weakened over the survey decade. The authors find, first, that the rate of mobility increased between the two pairs of sectors. Sample transition rates grew across survey waves, while state dependence in sector choice decreased. Second, the sensitivity of sector choice to earnings gaps increased over the same period. In particular, the role of comparative earnings in selection into the informal sector was evident throughout the survey decade and increased in magnitude over the second half of the period. 2012-06-06T14:52:22Z 2012-06-06T14:52:22Z 2007-03 http://documents.worldbank.org/curated/en/2007/03/7459297/mobility-earnings-ethiopias-urban-labor-markets-1994-2004 http://hdl.handle.net/10986/7237 English Policy Research Working Paper; No. 4168 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Africa Ethiopia
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic AGE GROUP
AGE GROUPS
BARRIERS TO ENTRY
DOMESTIC WORKERS
EMPLOYEE
EMPLOYERS
EMPLOYMENT
EMPLOYMENT STATUS
ENTRY BARRIERS
EXOGENOUS VARIABLES
FORMAL SECTOR WAGE
FORMAL SECTOR WORKERS
HUMAN CAPITAL
INFORMAL EMPLOYMENT
INFORMAL SECTOR
INFORMAL SECTOR WORKER
INFORMAL SECTOR WORKERS
JOB LOSS
JOB LOSSES
JOB SEARCH
JOBS
LABOR FORCE
LABOR MARKET
LABOR MARKET INDICATORS
LABOR MARKET SEGMENTATION
LABOR MARKETS
LABOR MOBILITY
LABOR REGULATION
LABORERS
MARKET STRUCTURE
MARKET STUDIES
OCCUPATION
OPEN UNEMPLOYMENT
PRICE RATIONING
PRIVATE COMPANIES
PRIVATE COMPANY
PRIVATE FIRM
PRIVATE FIRMS
PRIVATE SECTOR
PRIVATE SECTOR EMPLOYEES
PRIVATE SECTOR JOB
PRIVATE SECTOR JOBS
PRIVATE SECTOR WAGE
PRIVATE SECTOR WORKER
PRIVATE SECTOR WORKERS
PRIVATE SECTORS
PUBLIC SECTOR EMPLOYEES
PUBLIC SECTOR EMPLOYMENT
PUBLIC SECTOR JOB
PUBLIC SECTOR JOBS
PUBLIC SECTOR WORKERS
SALES
SELF EMPLOYED
SELF EMPLOYMENT
SELFEMPLOYMENT
SKILLED WORKERS
SMALL BUSINESSES
UNEMPLOYED
UNEMPLOYMENT
UNEMPLOYMENT RATE
WAGE DIFFERENTIALS
WAGE EMPLOYMENT
WAGE PREMIUMS
WAGE SECTOR
WORK IN PROGRESS
WORKER
WORKERS
WORKING
WORKING MOTHERS
spellingShingle AGE GROUP
AGE GROUPS
BARRIERS TO ENTRY
DOMESTIC WORKERS
EMPLOYEE
EMPLOYERS
EMPLOYMENT
EMPLOYMENT STATUS
ENTRY BARRIERS
EXOGENOUS VARIABLES
FORMAL SECTOR WAGE
FORMAL SECTOR WORKERS
HUMAN CAPITAL
INFORMAL EMPLOYMENT
INFORMAL SECTOR
INFORMAL SECTOR WORKER
INFORMAL SECTOR WORKERS
JOB LOSS
JOB LOSSES
JOB SEARCH
JOBS
LABOR FORCE
LABOR MARKET
LABOR MARKET INDICATORS
LABOR MARKET SEGMENTATION
LABOR MARKETS
LABOR MOBILITY
LABOR REGULATION
LABORERS
MARKET STRUCTURE
MARKET STUDIES
OCCUPATION
OPEN UNEMPLOYMENT
PRICE RATIONING
PRIVATE COMPANIES
PRIVATE COMPANY
PRIVATE FIRM
PRIVATE FIRMS
PRIVATE SECTOR
PRIVATE SECTOR EMPLOYEES
PRIVATE SECTOR JOB
PRIVATE SECTOR JOBS
PRIVATE SECTOR WAGE
PRIVATE SECTOR WORKER
PRIVATE SECTOR WORKERS
PRIVATE SECTORS
PUBLIC SECTOR EMPLOYEES
PUBLIC SECTOR EMPLOYMENT
PUBLIC SECTOR JOB
PUBLIC SECTOR JOBS
PUBLIC SECTOR WORKERS
SALES
SELF EMPLOYED
SELF EMPLOYMENT
SELFEMPLOYMENT
SKILLED WORKERS
SMALL BUSINESSES
UNEMPLOYED
UNEMPLOYMENT
UNEMPLOYMENT RATE
WAGE DIFFERENTIALS
WAGE EMPLOYMENT
WAGE PREMIUMS
WAGE SECTOR
WORK IN PROGRESS
WORKER
WORKERS
WORKING
WORKING MOTHERS
Bigsten, Arne
Mengistae, Taye
Shimeles, Abebe
Mobility and Earnings in Ethiopia's Urban Labor Markets: 1994-2004
geographic_facet Africa
Ethiopia
relation Policy Research Working Paper; No. 4168
description An analysis of panel data on individuals in a random selection of urban households in Ethiopia reveals large, sustained, and unexplained earnings gaps between public and private, and formal and informal sectors over the period 1994-2004. The authors have no formal evidence whether these gaps reflect segmentation of the labor market along either of these divides. In other words, they cannot show whether they are at least in part due to impediments to entry in the higher wage sector. But they do have evidence that, if segmentation explains any part of the observed earnings gaps, then it could only have weakened over the survey decade. The authors find, first, that the rate of mobility increased between the two pairs of sectors. Sample transition rates grew across survey waves, while state dependence in sector choice decreased. Second, the sensitivity of sector choice to earnings gaps increased over the same period. In particular, the role of comparative earnings in selection into the informal sector was evident throughout the survey decade and increased in magnitude over the second half of the period.
format Publications & Research :: Policy Research Working Paper
author Bigsten, Arne
Mengistae, Taye
Shimeles, Abebe
author_facet Bigsten, Arne
Mengistae, Taye
Shimeles, Abebe
author_sort Bigsten, Arne
title Mobility and Earnings in Ethiopia's Urban Labor Markets: 1994-2004
title_short Mobility and Earnings in Ethiopia's Urban Labor Markets: 1994-2004
title_full Mobility and Earnings in Ethiopia's Urban Labor Markets: 1994-2004
title_fullStr Mobility and Earnings in Ethiopia's Urban Labor Markets: 1994-2004
title_full_unstemmed Mobility and Earnings in Ethiopia's Urban Labor Markets: 1994-2004
title_sort mobility and earnings in ethiopia's urban labor markets: 1994-2004
publisher World Bank, Washington, DC
publishDate 2012
url http://documents.worldbank.org/curated/en/2007/03/7459297/mobility-earnings-ethiopias-urban-labor-markets-1994-2004
http://hdl.handle.net/10986/7237
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