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Who Benefits from Promoting Small and Medium Scale Enterprises? Some Empirical Evidence from Ethiopia

ACCESS TO CREDIT ACCESS TO FINANCE ACTIVE LABOR ACTIVE LABOR MARKET ACTIVE LABOR MARKET PROGRAM ACTIVE LABOR MARKET PROGRAMS ADJUSTMENT COSTS BUSINESS DEVELOPMENT CAPITAL LABOR RATIO CAPITAL STOCK CASUAL WORKER CASUAL WORKERS COBB-DOUGLAS PRODUCTION FUNCTION CONSTANT RETURNS TO SCALE COOP CORPORATION DEFLATORS DEMOGRAPHIC CHARACTERISTICS DISCRIMINATION DISCRIMINATION AGAINST WOMEN DIVIDENDS EARNINGS EARNINGS REGRESSIONS ECONOMETRIC MODELS ECONOMETRICS ECONOMIC DEVELOPMENT ECONOMIC SURVEYS ECONOMICS EDUCATIONAL ATTAINMENT EDUCATIONAL BACKGROUND EMPLOYEE EMPLOYMENT HISTORY EMPLOYMENT OPPORTUNITIES EMPLOYMENT PROSPECTS ENTREPRENEURSHIP EXCESS DEMAND EXCLUSION EXPENDITURES FARMER FINANCIAL SUPPORT FIRM GROWTH FIRM SIZE FUTURE RESEARCH GENDER GENERAL EQUILIBRIUM HIGH UNEMPLOYMENT HOUSEHOLD CHARACTERISTICS HUMAN CAPITAL INCOME INNOVATION INPUT PRICE INTERNATIONAL BANK INTERNATIONAL FINANCE JOB CREATION JOB OPPORTUNITIES JOBS LABOR DEMAND LABOR FORCE LABOR INTENSITY LABOR MARKET MEDIUM SCALE ENTERPRISES MICRO-ENTERPRISE MICRO-ENTERPRISE DEVELOPMENT MOTIVATION OCCUPATION ORGANIZATIONAL STRUCTURE OUTPUTS OVERHEAD COST PERMANENT WORKERS PHYSICAL CAPITAL PRODUCTION FUNCTIONS PRODUCTION PROCESS PRODUCTIVITY PRODUCTIVITY GROWTH RECEIPT SELF EMPLOYED SELF-EMPLOYMENT SELF-EMPLOYMENT ASSISTANCE SKILLED PERSONNEL SMALL FIRMS SMALL-SCALE ENTERPRISES SME SME SUPPORT PROGRAMS SUBSTITUTION EFFECTS TOTAL COSTS TRANSITION ECONOMIES UNEMPLOYED UNEMPLOYED WORKERS UNEMPLOYMENT UNEMPLOYMENT SPELL UNSKILLED LABOR VOCATIONAL EDUCATION WAGES WORKER WORKERS
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World Bank, Washington, DC
Africa | Ethiopia
2012-05-30T19:43:00Z | 2012-05-30T19:43:00Z | 2008-05

The Addis Ababa Integrated Housing Development Program aims to tackle the housing shortage and unemployment that prevail in Addis Ababa by deploying and supporting small and medium scale enterprises to construct low-cost housing using technologies novel for Ethiopia. The motivation for such support is predicated on the view that small firms create more jobs per unit of investment by virtue of being more labor intensive and that the jobs so created are concentrated among the low-skilled and hence the poor. To assess whether the program has succeeded in biasing technology adoption in favor of labor and thereby contributed to poverty reduction, the impact of the program on technology usage, labor intensity, and earnings is investigated using a unique matched workers-firms dataset, the Addis Ababa Construction Enterprise Survey. The data are representative of all registered construction firms in Addis and were collected specifically for the purpose of analyzing the impact of the program. The authors find that program firms do not adopt different technologies and are not more labor intensive than non-program firms. There is an earnings premium for program participants, who tend to be relatively well-educated, which is heterogeneous and highest for those at the bottom of the earnings distribution.

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