Short-Run Welfare Impacts of Factory Jobs : Experimental Evidence from Ethiopia
Many countries in Sub-Saharan Africa face a rapidly growing population and labor force in demand of good jobs. Ethiopia has reacted to this challenge by prioritizing large-scale industrial development through the construction of industrial parks to...
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2020
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/400881595340716051/Short-Run-Welfare-Impacts-of-Factory-Jobs-Experimental-Evidence-from-Ethiopia http://hdl.handle.net/10986/34171 |
| Summary: | Many countries in Sub-Saharan Africa
face a rapidly growing population and labor force in demand
of good jobs. Ethiopia has reacted to this challenge by
prioritizing large-scale industrial development through the
construction of industrial parks to drive exports, job
creation, and growth. However, the African experience with
industrial parks so far has been mixed. To provide further
evidence on the welfare effects of factory jobs in Ethiopia,
this study conducted an experiment that facilitated the job
application and onboarding process for young female job
seekers at three factories. Using panel data from 827
applicants, the study finds that the extra support increased
the likelihood of being employed in the treatment group in
the short run, largely driven by wage and factory work.
Further, the intervention raised reported monthly income by
nearly 30 percent in the treatment group. However, the study
also finds an adverse impact on health outcomes as well as
downward adjustments of applicants' expectations and
perceptions of the earnings potential and desirability of
factory work in response to the treatment. |
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