Tradable Jobs and Local Labour Market in sub-Saharan Africa

Matthieu Charpe

MPRA Paper from University Library of Munich, Germany

Abstract: This paper measures the impact of attracting tradable jobs on nontradable jobs at the local level in sub-Saharan countries. Applying the local multiplier approach to 10 medium and low-income countries disaggregated into 1441 administrative entities, we show that the multipliers are 3 to 5 times larger than in high-income countries. The multipliers also increase with the employment status and the skills of the tradable jobs created, highlighting the importance of the consumption of locally produced goods. This points to the importance of manufacturing for economic development and structural transformation. The paper also suggests a modification of the usual shift-share instrumental variable in countries characterized by sectoral diversification/unconditional convergence. Lastly, we show that the multipliers maybe be impacted by the size of administrative entities.

Keywords: Local multiplier; tradable; nontradable; local labour market; structural transformation (search for similar items in EconPapers)
JEL-codes: J23 J46 O14 R11 R22 (search for similar items in EconPapers)
Date: 2022-10-03
New Economics Papers: this item is included in nep-afr, nep-geo and nep-lma
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:114859

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