Appendix Ghana

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Appendix Ghana
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Conclusion

• per capita growth is accompanied by
• an increase in output per worker in the primary
  and tertiary sectors
• a decrease in output per worker in the secondary
  sector in recent years
• an increase in employment share of the working
  age population in the secondary and tertiary
  sectors
• a decrease in employment share of the working age
  population in the primary sector

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Further work

• Use household data to further analyze the link
  between growth and poverty
• How have these changes in sectors affected
  poverty in each sector
• How have earnings changed?
• How has labor force participation changed?
• What is the role of mobility across sectors?

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• Institutions
• Segmentation
• Oaxaca
• Prob of having bad job
• Skills profile and mismatch
• Labor demand

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Conclusion

• Per capita growth is accompanied by
• - an increase in output per worker
• - a decrease in dependency ratio
• - a decrease in employment share of the
  working age population
• There are important differences between sectors
  and across growth spells

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Appendix Nicaragua
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Linking employment and productivity growth with
poverty

• Regression approach
• Sectoral decomposition approach

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• Changes in average per capita household labor
  income
• Groups can be defined by decile, or employment
  status (waged, self employed etc) or poor and non
  poor.

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Labor income profile of the population

• Decomposing changes in per capita household labor
  income
• The average per capita labor income of the
  subset O of households

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Segmentation and mismatch, labor supply, and
labor demand

• Segmentation Which are the prevailing
  institutional wage setting mechanisms? How
  important are wage differentials between
  different segments of the labor market? Is there
  any evidence of segmentation?
• Labor Supply and mismatch of skills What is the
  structure of the labor force? Is there any
  evidence of skill mismatch?
• Labor demand How does unskilled labor respond to
  the cost of labor, the price of other inputs and
  total demand? Is there any stickiness in the
  adjustment process of employment to changes in
  demand?

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Segmentation

• Describe the institutional wage setting
  mechanisms
• Estimate earnings functions for 5 different
  segments of the labor market (suggested segments)
• Private wage workers in formal sector
• Private wage workers in the informal sector
• Public wage workers
• Self employed with paid employees
• Self employed with no paid employees
• Family enterprise workers

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Estimate differences in returns to individual
characteristics

• Perform and Oaxaca-Blinder decomposition to
  determine what fraction of wage differentials
  within two segments are due to differences in
  returns

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Labor supply and mismatch

• Long run trends in the labor force profile of the
  population by skill level, urban/rural and
  gender.
• Analyze mismatch of skills, several indicators.

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Labor demand estimation

• Static labor demand (Generalized Leontief)
• Own wage elasticitity
• Elasticity of substitution
• Output elasticity

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