Structural Changes and Employment Growth in Sub-Saharan Africa: Does Demographic Structure Matter?

Abidemi C. Adegboye () and Nosakhare L. Arodoye
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Abidemi C. Adegboye: University of Lagos, Nigeria
Nosakhare L. Arodoye: University of Lagos, Nigeria

Journal of Economic Development, 2023, vol. 48, issue 2, 143-166

Abstract: This study examines the effects of structural changes on employment growth in the sub-Saharan African (SSA) region using demographic structure as an intermediary factor. Data used covers 37 SSA countries for the period 2000 to 2018 and the Generalised Method of Moments (GMM) and decomposition techniques are employed to show the indirect and direct relationships respectively. Economic structure in the region is found to mainly promote total employment with services sector having a larger capacity for absorbing labour, especially in low-productivity activities. There is also evidence that demographic changes in SSA region, while acting as a strong base for drawing employment, has led to significant losses in productive employment yields. Countries with large labour force tend to produce highly vulnerable and less productive employment, especially for the youths. Demographic changes, rather than economic structure, have more long run implications for employment in the SSA region.

Keywords: Decomposition Analysis; Employment Rate; Employment Vulnerability; Labour Force Growth; Productivity Growth; Sectoral Shares (search for similar items in EconPapers)
JEL-codes: J11 J21 J62 O14 O17 (search for similar items in EconPapers)
Date: 2023
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