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Local and Personal Networks in Employment and the Development of Labor Markets:Evidence from the Cut Flower Industry in Ethiopia

Yukichi Mano (), Takashi Yamano (), Aya Suzuki and Tomoya Matsumoto ()

No 10-29, GRIPS Discussion Papers from National Graduate Institute for Policy Studies

Abstract: We examine the roles of local and personal networks in the employment process and the emergence and development of the labor market in Ethiopia’s growing cut flower industry. Using primary survey data of 320 workers randomly sampled from all 64 farms, we find that workers who were recruited informally using the social ties were paid less than the formally-recruited workers at hiring. However, these workers quickly increased their productivity, and the effect of social ties on wages disappeared over time. Further, we find that the development of labor market for this newly-emerged industry took place particularly within the industrial clusters (100 words).

Keywords: Labor; Market; Cluster; Cut Flower; Ethiopia; Africa (search for similar items in EconPapers)
Pages: 38 pages
Date: 2011-01
New Economics Papers: this item is included in nep-afr, nep-dev, nep-lab, nep-soc and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:ngi:dpaper:10-29

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