Who Benefits from Promoting Small Enterprises? Some Empirical Evidence from Ethiopia

The Addis Ababa Integrated Housing Development Program (AAIHDP) aims to tackle the housing shortage and unemployment that prevail in Addis Ababa by deploying and supporting small enterprises to construct low-cost housing using technologies novel for Ethiopia. The motivation for such support is predi...

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Main Authors: Rijkers, Bob, Ruggeri Laderchi, Caterina, Teal, Francis
Format: Journal Article
Language:EN
Published: 2012
Subjects:
Online Access:http://hdl.handle.net/10986/4888
id okr-10986-4888
recordtype oai_dc
spelling okr-10986-48882021-04-23T14:02:20Z Who Benefits from Promoting Small Enterprises? Some Empirical Evidence from Ethiopia Rijkers, Bob Ruggeri Laderchi, Caterina Teal, Francis Firm Behavior: Empirical Analysis D220 Production Cost Capital, Total Factor, and Multifactor Productivity Capacity D240 Wage Level and Structure Wage Differentials J310 Firm Performance: Size, Diversification, and Scope L250 The Addis Ababa Integrated Housing Development Program (AAIHDP) aims to tackle the housing shortage and unemployment that prevail in Addis Ababa by deploying and supporting small 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 (AACES), collected specifically for the purpose of analyzing the impact of the program. We find that program firms do not adopt different technologies and are not more labor intensive than nonprogram 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. 2012-03-30T07:30:14Z 2012-03-30T07:30:14Z 2010 Journal Article World Development 0305750X http://hdl.handle.net/10986/4888 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article Ethiopia
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language EN
topic Firm Behavior: Empirical Analysis D220
Production
Cost
Capital, Total Factor, and Multifactor Productivity
Capacity D240
Wage Level and Structure
Wage Differentials J310
Firm Performance: Size, Diversification, and Scope L250
spellingShingle Firm Behavior: Empirical Analysis D220
Production
Cost
Capital, Total Factor, and Multifactor Productivity
Capacity D240
Wage Level and Structure
Wage Differentials J310
Firm Performance: Size, Diversification, and Scope L250
Rijkers, Bob
Ruggeri Laderchi, Caterina
Teal, Francis
Who Benefits from Promoting Small Enterprises? Some Empirical Evidence from Ethiopia
geographic_facet Ethiopia
relation http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description The Addis Ababa Integrated Housing Development Program (AAIHDP) aims to tackle the housing shortage and unemployment that prevail in Addis Ababa by deploying and supporting small 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 (AACES), collected specifically for the purpose of analyzing the impact of the program. We find that program firms do not adopt different technologies and are not more labor intensive than nonprogram 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.
format Journal Article
author Rijkers, Bob
Ruggeri Laderchi, Caterina
Teal, Francis
author_facet Rijkers, Bob
Ruggeri Laderchi, Caterina
Teal, Francis
author_sort Rijkers, Bob
title Who Benefits from Promoting Small Enterprises? Some Empirical Evidence from Ethiopia
title_short Who Benefits from Promoting Small Enterprises? Some Empirical Evidence from Ethiopia
title_full Who Benefits from Promoting Small Enterprises? Some Empirical Evidence from Ethiopia
title_fullStr Who Benefits from Promoting Small Enterprises? Some Empirical Evidence from Ethiopia
title_full_unstemmed Who Benefits from Promoting Small Enterprises? Some Empirical Evidence from Ethiopia
title_sort who benefits from promoting small enterprises? some empirical evidence from ethiopia
publishDate 2012
url http://hdl.handle.net/10986/4888
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