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...

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Main Authors: Abebe, Girum, Buehren, Niklas, Goldstein, Markus
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2020
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
id okr-10986-34171
recordtype oai_dc
spelling okr-10986-341712022-09-20T00:11:57Z Short-Run Welfare Impacts of Factory Jobs : Experimental Evidence from Ethiopia Abebe, Girum Buehren, Niklas Goldstein, Markus INDUSTRIAL PARKS FEMALE EMPLOYMENT FEMALE LABOR FORCE PARTICIPATION FACTORY JOB GENDER INNOVATION LAB AFRICA GENDER POLICY WOMEN AND EMPLOYMENT EXPORTS JOB ASSISTANCE WOMEN AND YOUTH EMPLOYMENT WOMEN AND PRIVATE SECTOR DEVELOPMENT 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. 2020-07-23T13:40:57Z 2020-07-23T13:40:57Z 2020-07 Working Paper http://documents.worldbank.org/curated/en/400881595340716051/Short-Run-Welfare-Impacts-of-Factory-Jobs-Experimental-Evidence-from-Ethiopia http://hdl.handle.net/10986/34171 English Policy Research Working Paper;No. 9325 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper 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 INDUSTRIAL PARKS
FEMALE EMPLOYMENT
FEMALE LABOR FORCE PARTICIPATION
FACTORY JOB
GENDER INNOVATION LAB
AFRICA GENDER POLICY
WOMEN AND EMPLOYMENT
EXPORTS
JOB ASSISTANCE
WOMEN AND YOUTH EMPLOYMENT
WOMEN AND PRIVATE SECTOR DEVELOPMENT
spellingShingle INDUSTRIAL PARKS
FEMALE EMPLOYMENT
FEMALE LABOR FORCE PARTICIPATION
FACTORY JOB
GENDER INNOVATION LAB
AFRICA GENDER POLICY
WOMEN AND EMPLOYMENT
EXPORTS
JOB ASSISTANCE
WOMEN AND YOUTH EMPLOYMENT
WOMEN AND PRIVATE SECTOR DEVELOPMENT
Abebe, Girum
Buehren, Niklas
Goldstein, Markus
Short-Run Welfare Impacts of Factory Jobs : Experimental Evidence from Ethiopia
geographic_facet Africa
Ethiopia
relation Policy Research Working Paper;No. 9325
description 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.
format Working Paper
author Abebe, Girum
Buehren, Niklas
Goldstein, Markus
author_facet Abebe, Girum
Buehren, Niklas
Goldstein, Markus
author_sort Abebe, Girum
title Short-Run Welfare Impacts of Factory Jobs : Experimental Evidence from Ethiopia
title_short Short-Run Welfare Impacts of Factory Jobs : Experimental Evidence from Ethiopia
title_full Short-Run Welfare Impacts of Factory Jobs : Experimental Evidence from Ethiopia
title_fullStr Short-Run Welfare Impacts of Factory Jobs : Experimental Evidence from Ethiopia
title_full_unstemmed Short-Run Welfare Impacts of Factory Jobs : Experimental Evidence from Ethiopia
title_sort short-run welfare impacts of factory jobs : experimental evidence from ethiopia
publisher World Bank, Washington, DC
publishDate 2020
url http://documents.worldbank.org/curated/en/400881595340716051/Short-Run-Welfare-Impacts-of-Factory-Jobs-Experimental-Evidence-from-Ethiopia
http://hdl.handle.net/10986/34171
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