International Monetary Fund
Structural transformation in employment and productivity: what can Africa hope for?
- Corporate Author:
- International Monetary Fund
- Louise Fox, Alun H. Thomas, Cleary Haines
The objective of this paper is to provide the most complete analysis of the structural transformation among low- and low-middle-income countries in sub-Saharan Africa. Previous global analysis has included only a few countries in sub-Saharan Africa. The analysis in this paper covers over 30 countries, assessing the extent and speed of structural transformation in output, employment, and productivity in the past decade. The analysis shows that there was structural transformation in some sub-Saharan African countries during 2000-10 as well as convergence in sector productivities within countries, but this change took place through strong movement in the shares of labor and output out of agriculture into services rather than into industry. This shift lowered relative productivity in services, in part because much of the movement was into lower-productivity nonwage employment. Several factors have been cited to explain this, including lower wage costs, lower energy costs, and lower logistical costs. This paper argues that the sluggish pace of a demographic transition in sub-Saharan Africa, which swelled the labor force, has played a major role as well.
|Format||Paperback||Published||30 Jul 2017|
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