#13 Africa’s Manufacturing Puzzle: Evidence from Tanzanian and Ethiopian Firms

Photo credit: Rob Beechey / World Bank   Authors: Xinshen Diaoa, Mia Ellisb, Margaret McMillanc, and Dani Rodrikd Some economists have called into question the primacy of manufacturing. For example, Gollin (2018) questions whether there is anything special about manufacturing and asks whether economists’ emphasis on manufacturing as a path to development reflects our lack…

food seller

#12 Is Self-Employment in Developing Countries a Steppingstone to Better Jobs? New Evidence from Panel Surveys

Photo credit: Scott Wallace / World Bank   Authors: Kevin Donovan, Will Jianyu Lu, and Todd Schoellman Economic development requires the reallocation of workers to more productive occupations, sectors, and regions. As such, evidence on labor market dynamics is critical for understanding whether labor markets are enabling the necessary movements of workers. In our recent…

#11 Youthful Countries Face Steeper Challenges Creating Better Jobs With Structural Change

Authors: Dino Merotto, Jörg Langbein, & Michael Weber In this blog, we explore how the challenges of delivering better jobs through structural change differ depending on where a country is in its demographic transition. We draw implications for jobs strategies in youthful countries. When developing countries enter the demographic transition the share of youth in…

#10 In Low Income Countries It Is Factor Accumulation That Drives Transformative Growth

Author: Dino Merotto Jobs Group, World Bank If you haven’t read Easterly and Levine’s “It’s Not Factor Accumulation” you should. But you should also read Klenow and Rodriguez-Clare’s “The Neoclassical Revival in Growth Economics: Has It Gone Too Far?”. Since it was published in 2001, Easterly and Levine’s ideas have shaped much of World Bank…

#9 Jobs and Structural Change: What’s different about resource-rich countries?

Authors: Andreas Eberhard-Ruiz and Kevwe Pela, Jobs Group, World Bank. In this blog, we explore whether the process of structural change differs between resource-rich and resource-poor economies, and discuss the implications of our findings for jobs strategies in resource-rich countries. The ‘Great Convergence’ of global incomes seen over the last 30 years, was triggered by…

#8 Which Comes First – the Chicken, the Egg, or the Demand for Poultry Products? Engels Law and the Design of Jobs Strategies in Low-Income Countries (LICs)

Authors: Dino Merotto and Elena Casanovas, Jobs Group, World Bank. In in blog #2 and blog #3 in this series we focused on the evolution of the sectoral pattern of production and jobs as countries develop. But new research suggests that changing patterns of consumption and net trade should also be taken into account when…

#4 Labor Productivity Grows Faster in Developing Countries When Labor Moves from Agriculture into Waged Jobs

Author: Dino Merotto, Jobs Group, World Bank. Blog #1 in our series showed that growth in labor productivity explains the differences in per capita income growth across countries. When we break down labor productivity growth into within and between sector components, we see that the reallocation of labor from lower productivity agriculture to higher productivity…