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Structural Transformation and Productivity Growth in Africa : Uganda in the 2000s

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World Bank (WB)

Abstract: Uganda’s economy underwent significant structural change in the 2000s whereby the share of non-tradable services in aggregate employment rose by about 7 percentage points at the expense of the production of tradable goods. The process also involved a 12-percentage-point shift in employment away from small and medium enterprises and larger firms in manufacturing and commercial agriculture mainly to microenterprises in retail trade. In addition, the sectoral reallocation of labor on these two dimensions coincided with significant growth in aggregate labor productivity. However, in and of itself, the same reallocation could only have held back, rather than aid, the observed productivity gains. This was because labor was more productive throughout the period in the tradable goods sector than in the non-tradable sector. Moreover, the effect on aggregate labor productivity of the reallocation of employment between the two sectors could only have been reinforced by the impacts on the same of the rise in the employment share of microenterprises. The effect was also strengthened by a parallel employment shift across the age distribution of enterprises that raised sharply the employment share of established firms at the expense of younger ones and startups. Not only was labor consistently less productive in microenterprises than in small and medium enterprises and larger enterprises across all industries throughout the period, it was also typically less productive in more established firms than in younger ones.
Type: Working Paper
Publications & Research :: Policy Research Working Paper
Publications & Research
Link: http://hdl.handle.net/10986/23467
Subject: JOBS
EMPLOYMENT
GROWTH RATE
MONETARY POLICY
MOTIVATION
PRODUCTIVITY LEVELS
ECONOMIC GROWTH
PRODUCTION
AGGREGATE PRODUCTIVITY
EMPLOYMENT SHARE
INFORMAL SECTOR
STRUCTURAL CHANGE
INCOME
PRODUCTIVE EMPLOYMENT
SERVICE SECTOR
EMPLOYMENT OPPORTUNITIES
SERVICE INDUSTRIES
TRADE BARRIERS
AGE GROUP
ELASTICITY OF DEMAND
INFORMATION
PRODUCTIVE INDUSTRIES
EXPORTS
ELASTICITY
POLITICAL ECONOMY
JOB‐CREATION
WELFARE
JOB
AGGREGATE PRODUCTIVITY
FIRM‐ SIZE
AGE GROUPS
DISTRIBUTION
VARIABLES
MARGINAL PRODUCTIVITY
INPUTS
RETAIL TRADE
REAL WAGES
PRODUCTIVITY INCREASE
EMPLOYMENT SIZE
FREE TRADE
WAGE GROWTH
JOB LOSSES
TRENDS
DRIVERS
DEVELOPMENT
PER CAPITA INCOMES
LABOR MARKET
PER CAPITA INCOME
EMPLOYMENT LEVELS
DEVELOPMENT ECONOMICS
EXPORT GROWTH
TELECOMMUNICATIONS
AGE‐GROUPS
FIRM LEVEL
WORKER
GROUP WORKER
PRODUCTIVITY
EXPORT LED GROWTH
LABOR PRODUCTIVITY
INDUSTRIALIZATION
INCREASING RETURNS
ORGANIZATIONS
MANUFACTURING INDUSTRIES
GROWTH RATE
AGE GROUP
OPEN ECONOMY
LABOR
LABOR PRODUCTIVITY
TOTAL EMPLOYMENT
EMPLOYMENT SHARE
ECONOMIC RESEARCH
TAXES
UNEMPLOYMENT
LABOR MARKET
JOB‐DESTRUCTION
PRODUCTIVITY GROWTH
VALUE ADDED
WORKERS
PRODUCTIVITY LEVELS
WAGES
INTERNATIONAL TRADE
REAL WAGE
HIGH EMPLOYMENT
VALUE
COMPETITIVENESS
CREDIT
MACROECONOMICS
PRODUCT DIFFERENTIATION
AGE GROUPS
COMPARATIVE ADVANTAGE
OCCUPATION
ECONOMY
AGRICULTURE
MANUFACTURING INDUSTRIES
PRODUCT DIFFERENTIATION
PRODUCTIVE FIRMS
ECONOMIC RENTS
EMPLOYMENT GROWTH
JOB CREATION
AGGREGATE EMPLOYMENT
GROUP WORKER
MEASUREMENT
SHARES
ECONOMIC THEORY
TRADE LIBERALIZATION
MANPOWER
MANAGEMENT
PRODUCTIVITY DECOMPOSITION
MANUFACTURING INDUSTRIES
TRADE
GDP
EXPORT‐LED GROWTH
GOODS
THEORY
ECONOMIES OF SCALE
ENTRY COSTS
GROWTH RATE
COMPARATIVE ADVANTAGE
TRADE LIBERALIZATION
PRODUCTIVITY GAP
INCOME ELASTICITY OF DEMAND
EMPLOYEE
PRODUCT MARKETS
ECONOMIES OF SCALE
DEVELOPMENT ECONOMICS
PRODUCTIVITY GAINS
LABOUR
AGGREGATE EMPLOYMENT
UNSKILLED LABOR
SELF‐EMPLOYMENT
SMALL BUSINESSES
PRICES
LABOR REALLOCATION
DEVELOPMENT POLICY
MANUFACTURING INDUSTRIES
EMPLOYEES




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