Appendix

Appendix Table 1.

Sub-Saharan Africa: Country Groups Used in This Paper

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Note: Sudan includes South Sudan due to data availability. * signifies employment estimates based on actual household surveys.Countries marked with * are “Resource rich” with a LFPR 88%
Appendix Table 2.

Asia: Country Groups Used in this Paper

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Appendix Table 3.

List of Country Abbreviations

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Appendix Table 4.

Sub-Saharan Africa and Asian Countries: GDP per Capita

(Current U.S. dollars)

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Source: IMF, World Economic Outlook January 2016.

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1

The countries included as part of sub-Saharan Africa are shown in Appendix Table 1.

2

Countries from this region are chosen because they experienced successful transformations with large increases in industry output and employment while they were still low-income countries. The only low-income country in Latin America is Haiti, but it has not experienced much structural transformation owing to political turmoil and the ongoing effects of natural disasters.

1

Obviously it is not the only measure used; other dimensions include the quality of institutions and the adequacy of levels of living and opportunity. But see the discussion in African Center for Economic Transformation 2014 as well as the fall 2012 Regional Economic Outlook for why the concept remains relevant.

2

See Appendix Table 2 for the list of Asian countries.

3

Data are available at comtrade.un.org/db.

4

For technical details on how the employment profile was created, see Fox and others 2013.

5

One well-known demonstration of this point is found in Timmer 1988.

6

See Fox and Sohnesen 2012 for an analysis of this sector in sub-Saharan Africa. Note that any paid nonfamily employee will be included in the category of wage employment.

7

Non-farm wage employment includes all labor force participants who report working outside the agricultural sector and receiving a payment for their work from an unrelated individual. It includes the public and private sectors.

1

As discussed on page 9, the resource-rich countries have a different growth pattern, with little private sector job creation. But they remain in the analysis for contrast.

2

There has been some argument that the use of aggregate PPPs is incorrect because of differences in relative prices between sectors, but since these are estimated with such wide error margins, using the aggregate PPPs is preferred.

3

See Eifert, Gelb, and Ramachandran 2008 for a discussion of these factors.

4

The figures on the level of productivity are confirmed by independent estimates from the U.S. Conference Board, which show that aggregate productivity in Vietnam and Cambodia is about a fifth of the level in South Africa.

1

These projections were prepared before the collapse of oil prices in 2014–15. Overall growth will most likely be lower in the resource-rich countries, reducing the growth of public sector wage employment in services, with knock-on effects on earnings in the household enterprise sector. The structure of employment was not expected to change much, however, so the employment projection is still valid.

2

As discussed in Fox and others 2013, an elasticity model was used to generate these employment projections.

Structural Transformation in Employment and Productivity: What Can Africa Hope For?
Author: Ms. Louise Fox, Mr. Alun H. Thomas, and Cleary Haines