Employment, productivity, wage structure and competitiveness in the manufacturing sector: An empirical assessment from Ethiopia

Notwithstanding recent spurt in growth averaging around 10% in the past decade, the Ethiopian manufacturing sector appears to be plagued with low productivity, high labour turnover, and poor competitiveness. Similarly, manufacturing contribution towards GDP and GDP growth remained at 4 % and 0.5 % in 2013/14 respectively, while its contribution towards merchandize export rarely exceeded 10% (World Bank, 2015). Without sustained increase in productivity and in the value added and employment share of labour in the manufacturing sector, economic growth alone fails to trigger structural transformation. To sustain growth and meet the stated industrialization objectives of the country, it is thus important to understand and overcome the key challengers related with limited employment growth, low productivity and poor competitiveness of the manufacturing sector. 

The general objective of the study is thus twofold. First, it investigates the major determinants and trajectories of employment, wage structure, productivity, and competitiveness of selected manufacturing sectors in Ethiopia and establish a baseline for a longitudinal study. Second, it analyses the nexus between employment, productivity and wage structure. In tandem with these objectives, the project will construct a baseline data against which changes in employment, wage structure, productivity and competitiveness of the manufacturing sector will be explored in selected key priority sectors in the GTP II period and beyond. This will involve at least two rounds of primary data collection from selected sectors. This project will run for three years starting January 2017.

The Principal Investigator for this project is Dr. Tigabu Degu, a research fellow at EDRI. The co-investigators are Dr. Girum Abebe, a research fellow and Dr. Gebrehiwot Ageba, senior researcher at EDRI.  


Principal Investigator

Dr. Tigabu Degu


Dr. Girum Abebe and Dr. Gebrehiwot Ageba


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