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What Determines Productivity in Senegal? Sectoral Disparities and the Dual Labor

Damien Échevin () and Fabrice Murtin ()

Cahiers de recherche from Departement d'Economique de l'École de gestion à l'Université de Sherbrooke

Abstract: Growth of the informal sector of the Senegalese economy may result in a productivity slowdown and could induce a surge in inequality and poverty. The production process is similar for some subsectors of the informal sector and those of the formal one. But there is evidence that the economy is deeply cleaved, between productive and non productive firms in the informal sector and voluntary and involuntary jobs on the labor market that proves to be dual. Education externalities are significant in the informal sector. The differences in human and physical capital account for about two thirds of the output gap.

Keywords: : formal and informal sectors; productivity; output gap; externalities; Senegal (search for similar items in EconPapers)
JEL-codes: O17 O47 J24 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2007, Revised 2008
New Economics Papers: this item is included in nep-afr, nep-dev, nep-eff, nep-hrm and nep-lab
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Persistent link: https://EconPapers.repec.org/RePEc:shr:wpaper:07-15

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