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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Main Authors: Rijkers, Bob, Ruggeri Laderchi, Caterina, Teal, Francis
Format: Policy Research Working Paper
Language:English
Published: World Bank, Washington, DC 2012
Subjects:
SME
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
id okr-10986-6699
recordtype oai_dc
spelling okr-10986-66992021-04-23T14:02:32Z Who Benefits from Promoting Small and Medium Scale Enterprises? Some Empirical Evidence from Ethiopia Rijkers, Bob Ruggeri Laderchi, Caterina Teal, Francis 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 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. 2012-05-30T19:43:00Z 2012-05-30T19:43:00Z 2008-05 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 English Policy Research Working Paper No. 4629 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 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
spellingShingle 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
Rijkers, Bob
Ruggeri Laderchi, Caterina
Teal, Francis
Who Benefits from Promoting Small and Medium Scale Enterprises? Some Empirical Evidence from Ethiopia
geographic_facet Africa
Ethiopia
relation Policy Research Working Paper No. 4629
description 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.
format Publications & Research :: Policy Research Working Paper
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 and Medium Scale Enterprises? Some Empirical Evidence from Ethiopia
title_short Who Benefits from Promoting Small and Medium Scale Enterprises? Some Empirical Evidence from Ethiopia
title_full Who Benefits from Promoting Small and Medium Scale Enterprises? Some Empirical Evidence from Ethiopia
title_fullStr Who Benefits from Promoting Small and Medium Scale Enterprises? Some Empirical Evidence from Ethiopia
title_full_unstemmed Who Benefits from Promoting Small and Medium Scale Enterprises? Some Empirical Evidence from Ethiopia
title_sort who benefits from promoting small and medium scale enterprises? some empirical evidence from ethiopia
publisher World Bank, Washington, DC
publishDate 2012
url 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
_version_ 1764400700638363648