Arbeitspapier

Labor Productivity in Rural African Enterprises: Empirical Evidence from the LSMS-ISA

Although non-farm enterprises are ubiquitous in rural Sub-Saharan Africa, little is yet known about their productivity. In this paper we contribute to filling this gap by providing estimates of labor productivity in enterprises for Ethiopia, Malawi, Nigeria, and Uganda. Using the World Bank's LSMS-ISA database, we find that rural enterprises are on average less productive than those in urban areas, and that female-owned enterprises are less productive than male-owned enterprises. By estimating Heckman selection and panel data models, we find that education and access to credit are associated with higher labor productivity, while households that experience shocks operate less productive enterprises. Furthermore we provide evidence that enterprises that operate throughout the year are more productive. We conclude that gender, education, shocks, access to finance, and location matter for labor productivity in rural Africa, and that policy decisions tackling the shortcomings could significantly contribute to a better business environment and increased labor productivity.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 8524

Klassifikation
Wirtschaft
Agricultural Labor Markets
Entrepreneurship
New Firms; Startups
Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
Economywide Country Studies: Africa
Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
Thema
entrepreneurship
informal sector
labor productivity
rural development
Sub-Saharan Africa

Ereignis
Geistige Schöpfung
(wer)
Nagler, Paula
Naudé, Wim
Ereignis
Veröffentlichung
(wer)
Institute for the Study of Labor (IZA)
(wo)
Bonn
(wann)
2014

Handle
Letzte Aktualisierung
10.03.2025, 11:45 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
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Objekttyp

  • Arbeitspapier

Beteiligte

  • Nagler, Paula
  • Naudé, Wim
  • Institute for the Study of Labor (IZA)

Entstanden

  • 2014

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