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  • 1
    Language: English
    Pages: Online-Ressource (1 online resource (38 p.))
    Edition: Online-Ausg. World Bank E-Library Archive
    Parallel Title: Bigsten, Arne Mobility And Earnings In Ethiopia's Urban Labor Markets, 1994-2004
    Keywords: Employment ; Entry Barriers ; Formal Sector Wage ; Informal Sector ; Job ; Jobs ; Labor ; Labor Market ; Labor Market Indicators ; Labor Markets ; Labor Markets ; Private Sector ; Private Sector Wages ; Social Protections and Labor ; Employment ; Entry Barriers ; Formal Sector Wage ; Informal Sector ; Job ; Jobs ; Labor ; Labor Market ; Labor Market Indicators ; Labor Markets ; Labor Markets ; Private Sector ; Private Sector Wages ; Social Protections and Labor ; Employment ; Entry Barriers ; Formal Sector Wage ; Informal Sector ; Job ; Jobs ; Labor ; Labor Market ; Labor Market Indicators ; Labor Markets ; Labor Markets ; Private Sector ; Private Sector Wages ; Social Protections and Labor
    Abstract: An analysis of panel data on individuals in a random selection of urban households in Ethiopia reveals large, sustained, and unexplained earnings gaps between public and private, and formal and informal sectors over the period 1994-2004. The authors have no formal evidence whether these gaps reflect segmentation of the labor market along either of these divides. In other words, they cannot show whether they are at least in part due to impediments to entry in the higher wage sector. But they do have evidence that, if segmentation explains any part of the observed earnings gaps, then it could only have weakened over the survey decade. The authors find, first, that the rate of mobility increased between the two pairs of sectors. Sample transition rates grew across survey waves, while state dependence in sector choice decreased. Second, the sensitivity of sector choice to earnings gaps increased over the same period. In particular, the role of comparative earnings in selection into the informal sector was evident throughout the survey decade and increased in magnitude over the second half of the period
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  • 2
    Language: English
    Pages: Online-Ressource (1 online resource (35 p.))
    Edition: Online-Ausg. World Bank E-Library Archive
    Parallel Title: Honorati, Maddalena Corruption, Business Environment, And Small Business Fixed Investment In India
    Keywords: Access to Finance ; Credit rationing ; Debt ; Economic Theory and Research ; Economic growth ; Emerging Markets ; Environment ; Environmental Economics and Policies ; Finance and Financial Sector Development ; Labor Policies ; Labor markets ; Macroeconomics and Economic Growth ; Marginal cost ; Price elasticity of demand ; Private Sector Development ; Productivity growth ; Property rights ; Social Protections and Labor ; Tax rates ; Wage rates ; Access to Finance ; Credit rationing ; Debt ; Economic Theory and Research ; Economic growth ; Emerging Markets ; Environment ; Environmental Economics and Policies ; Finance and Financial Sector Development ; Labor Policies ; Labor markets ; Macroeconomics and Economic Growth ; Marginal cost ; Price elasticity of demand ; Private Sector Development ; Productivity growth ; Property rights ; Social Protections and Labor ; Tax rates ; Wage rates ; Access to Finance ; Credit rationing ; Debt ; Economic Theory and Research ; Economic growth ; Emerging Markets ; Environment ; Environmental Economics and Policies ; Finance and Financial Sector Development ; Labor Policies ; Labor markets ; Macroeconomics and Economic Growth ; Marginal cost ; Price elasticity of demand ; Private Sector Development ; Productivity growth ; Property rights ; Social Protections and Labor ; Tax rates ; Wage rates
    Abstract: This paper estimates a structural dynamic business investment equation and an error correction model of fixed assets growth on a sample of predominantly small and mid-size manufacturers in India. The results suggest that excessive labor regulation, power shortages, and problems of access to finance are all significant factors in industrial growth in the country. The estimated effects of labor regulation, power shortages and access to finance on the rate of business investment all vary by states' levels of industrial development and. Perhaps more importantly, they also depend on a fourth institutional factor, namely, corruption. The rate of fixed investment is significantly lower where power shortages are more severe and labor regulation is stronger over the full sample, but each of these impacts is also greater for businesses self-reportedly affected by corruption. Although access to finance does not seem to influence the rate of investment for most firms, there is evidence that investment decisions are constrained by cash flow in enterprises that are unaffected by corruption or power shortages. There are nuances to this story as we take into account regional specificity, but the key result always holds that labor regulation, power shortages and access to finance influence the rate of fixed investment in ways that depend on the incidence of corruption. In interpreting this finding, we would like to think of corruption as a proxy for the quality of property rights institutions in the sense of Acemoglu and Johnson (2005). On the other hand, we regard labor regulation and the financial environment of small businesses in India as instances of what Acemoglu and Johnson (2005) call 'contracting institutions'. The analysis finds that the interaction between corruption and other aspects of the institutional environment of fixed investment decisions could be seen consistent with the Acemoglu-Johnson view that the quality of property rights institutions exerts more abiding influence on economic outcomes than the quality of contracting institutions
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  • 3
    Language: English
    Pages: Online-Ressource (1 online resource (31 p.))
    Edition: Online-Ausg. World Bank E-Library Archive
    Parallel Title: Honorati, Maddalena Corruption, The Business Environment, And Small Business Growth In India
    Keywords: Access to Finance ; Credit rationing ; Econometrics ; Economic Development ; Economic Growth ; Economic growth ; Environment ; Environmental Economics and Policies ; Finance and Financial Sector Development ; Labor Markets ; Labor Policies ; Labor markets ; Macroeconomics and Economic Growth ; Political Economy ; Productivity growth ; Property rights ; Social Protections and Labor ; Wage Differentials ; Wage rates ; Access to Finance ; Credit rationing ; Econometrics ; Economic Development ; Economic Growth ; Economic growth ; Environment ; Environmental Economics and Policies ; Finance and Financial Sector Development ; Labor Markets ; Labor Policies ; Labor markets ; Macroeconomics and Economic Growth ; Political Economy ; Productivity growth ; Property rights ; Social Protections and Labor ; Wage Differentials ; Wage rates ; Access to Finance ; Credit rationing ; Econometrics ; Economic Development ; Economic Growth ; Economic growth ; Environment ; Environmental Economics and Policies ; Finance and Financial Sector Development ; Labor Markets ; Labor Policies ; Labor markets ; Macroeconomics and Economic Growth ; Political Economy ; Productivity growth ; Property rights ; Social Protections and Labor ; Wage Differentials ; Wage rates
    Abstract: This paper estimates a dynamic business growth equation on a sample of small-scale manufacturers. The results suggest that excessive labor regulation, power shortages, and problems of access to finance are significant influences on industrial growth in India. The expected annual sales growth rate of an enterprise is lower where labor regulation is greater, power shortages are more severe, and cash flow constraints are stronger. The effects of each of the three factors on business growth seem also to depend on a fourth element, namely, corruption. Specifically, labor regulation affects the growth only of enterprises for which corruption is not a factor in business decisions. By contrast, power shortages seem to be a drag on the growth only of enterprises self-reportedly held back by corruption. Lastly, sales growth is constrained by cash flow only in businesses that are not affected by labor regulation, power shortages, or corruption. The analysis uses corruption as a proxy for the quality of "property rights institutions" and considers labor regulation and small business financing as instances of "contracting institutions." The findings on the interaction between corruption and other aspects of business environment then seems to indicate that the quality of property rights institutions exerts more abiding influence on economic outcomes than the quality of contracting institutions. Moreover, there might also be a hierarchy among contracting institutions in their effect on manufacturing growth
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  • 4
    Language: English
    Pages: Online-Ressource (1 online resource (40 p.))
    Edition: Online-Ausg. World Bank E-Library Archive
    Parallel Title: Lall, Somik V Business Environment, Clustering, And Industry Location
    Keywords: Bank ; Banks and Banking Reform ; Debt Markets ; E-Business ; Economic Theory and Research ; Economies ; Employment ; Finance ; Finance and Financial Sector Development ; Financial Literacy ; Governance ; Governments ; Idle Capacity ; Industry ; Industry ; Infrastructure ; Labor ; Labor Policies ; Land ; Laws ; Legislation ; Macroeconomic Stability ; Macroeconomics and Economic Growth ; Microfinance ; Private Sector Development ; Social Protections and Labor ; Water Resources ; Water and Industry ; Bank ; Banks and Banking Reform ; Debt Markets ; E-Business ; Economic Theory and Research ; Economies ; Employment ; Finance ; Finance and Financial Sector Development ; Financial Literacy ; Governance ; Governments ; Idle Capacity ; Industry ; Industry ; Infrastructure ; Labor ; Labor Policies ; Land ; Laws ; Legislation ; Macroeconomic Stability ; Macroeconomics and Economic Growth ; Microfinance ; Private Sector Development ; Social Protections and Labor ; Water Resources ; Water and Industry ; Bank ; Banks and Banking Reform ; Debt Markets ; E-Business ; Economic Theory and Research ; Economies ; Employment ; Finance ; Finance and Financial Sector Development ; Financial Literacy ; Governance ; Governments ; Idle Capacity ; Industry ; Industry ; Infrastructure ; Labor ; Labor Policies ; Land ; Laws ; Legislation ; Macroeconomic Stability ; Macroeconomics and Economic Growth ; Microfinance ; Private Sector Development ; Social Protections and Labor ; Water Resources ; Water and Industry
    Abstract: How do differences in the local business environment influence location of industry within countries? How do the benefits of a good business environment compare with those from good market access and agglomeration economies from industry clustering? The authors examine these questions by analyzing location decisions of individual firms. Using data from a recently completed survey of manufacturing firms in India, they find that both the local business environment and agglomeration economies significantly influence business location choices across cities. In particular, excessive regulation of labor and of other industrial activities reduces the probability of a business locating in a city. The authors ' findings imply that in order to attract industrial activity, smaller or remoter cities need to offer even more attractive policy concessions or reforms to offset the effects of their relatively adverse (economic) geography. Their methodology pays special attention to the identification of agglomeration economies in the presence of unobserved sources of natural advantage
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  • 5
    Language: English
    Pages: Online-Ressource (1 online resource (49 p.))
    Edition: Online-Ausg. World Bank E-Library Archive
    Parallel Title: Mengistae, Taye The Relative Effects of Skill Formation and Job Matching on Wage Growth in Ethiopia
    Keywords: Earning ; Economic Theory and Research ; Employees ; Finance and Financial Sector Development ; Financial Literacy ; Firm Level ; Human Capital ; Job ; Job Match ; Job Matches ; Job Separation ; Job Skill ; Jobs ; Labor Markets ; Labour ; Labour Market ; Labour Market Experience ; Macroeconomics and Economic Growth ; Older Workers ; Political Economy ; Productivity Increase ; Social Protections and Labor ; Wage Determination ; Wage Rate ; Wage Rates ; Worker ; Workers ; Earning ; Economic Theory and Research ; Employees ; Finance and Financial Sector Development ; Financial Literacy ; Firm Level ; Human Capital ; Job ; Job Match ; Job Matches ; Job Separation ; Job Skill ; Jobs ; Labor Markets ; Labour ; Labour Market ; Labour Market Experience ; Macroeconomics and Economic Growth ; Older Workers ; Political Economy ; Productivity Increase ; Social Protections and Labor ; Wage Determination ; Wage Rate ; Wage Rates ; Worker ; Workers
    Abstract: April 1999 - Estimated age and job seniority profiles of wages and marginal productivity in Ethiopia suggest that both skill formation and job matching significantly affect growth of wages and productivity over time. However, job matching is by far the more important of the two sources of growth in wages and productivity. Mengistae analyzes production and labor market data for a random selection of small to medium-size firms in Ethiopia to answer two questions: ° Does a worker's marginal productivity increase with time in the labor market or with job seniority, as must be the case if on-the-job skill formation or job matching has anything to do with the dynamics of wages observed in the data? ° Assuming that marginal productivity grows with experience or seniority, is skill formation more or less important than job matching as a source of growth in productivity? The main feature of Mengistae's analysis is the joint regression of the log of the average product of hours in a firm and the log of average hourly earnings of a firm's employees on the shares of experience-seniority cells of workers in total annual hours in the firm. Marginal productivity falls as experience in the labor market passes the 15-year mark, but the expected marginal product of a mobile worker with 16 or more years of experience is still nearly 80 percent higher than that of the base group. The between-jobs growth of hourly wages with potential experience is also large, but not as large as growth in marginal productivity for workers with less than 15 years of experience. Mengistae concludes that job matching is far more important than skill formation as a source of growth in productivity. Net mobility gains account for at least twice the share of the return to skill formation in the observed between-jobs growth of wages with market experience. The rate of return to skills formation is higher in the United States than in Ethiopia. The relative return to skills formation is probably lower in Ethiopia partly because the flow of information about the labor market is more restricted there. This paper-a product of the Development Research Group-is part of a larger effort in the group to identify firm-level sources of growth in productivity. The author may be contacted at tmengistaeworldbank.org
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