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Employment and Shared Growth Linkages in Madagascar: Insights and Recommendations

This presentation explores the relationship between employment and shared growth in Madagascar. It highlights main findings on labor productivity, earnings, poverty, and inequality, and provides recommendations for policy guidance on poverty reduction through labor.

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Employment and Shared Growth Linkages in Madagascar: Insights and Recommendations

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  1. Shared-Growth and Job Creation:Exploring Employment and Shared Growth Linkages in Madagascar Margo Hoftijzer

  2. Structure of presentation • Set-up of study • Main findings • Assessment of pilot World Bank & CSAE - Shared Growth and Job Creation in Africa - March 2008

  3. Set-up of Study Exploring the role of labor as linkage between growth and poverty reduction 1. From growth to employment: Linking changes in output p.c. to changes in labor productivity and employment (Shapley). 2. From labor productivity to earnings: Linking changes in labor productivity to changes in earnings (macro-micro comparison). 3. From employment and earnings to poverty: Linking changes in sectoral employment and earnings with those in poverty (Ravallion, Huppi). Linking changes in labor income components to changes in poverty (Kakwani, Neri, Son) World Bank & CSAE - Shared Growth and Job Creation in Africa - March 2008

  4. A crisis-affected period(overall and sectoral annual output growth, %) World Bank & CSAE - Shared Growth and Job Creation in Africa - March 2008

  5. Basic indicatorsPopulation, employment and poverty (2001, 2005) World Bank & CSAE - Shared Growth and Job Creation in Africa - March 2008

  6. Output per worker linked to GDP p.c.Shapley decomposition (2001-2005) World Bank & CSAE - Shared Growth and Job Creation in Africa - March 2008

  7. Inequality reducesDistribution of monthly earnings (2001,2005) World Bank & CSAE - Shared Growth and Job Creation in Africa - March 2008

  8. Revealing sectoral developments Employment and earnings by sector (2001, 2005) World Bank & CSAE - Shared Growth and Job Creation in Africa - March 2008

  9. Employment and poverty Changes in employment differ by poverty level World Bank & CSAE - Shared Growth and Job Creation in Africa - March 2008

  10. Income sources and consumption Changes in HH income sources differ by consumption level World Bank & CSAE - Shared Growth and Job Creation in Africa - March 2008

  11. Decomposing poverty reductionInter and intra sectoral contributions World Bank & CSAE - Shared Growth and Job Creation in Africa - March 2008

  12. Sources of changes in labor income(average, per household, 2001-2005) World Bank & CSAE - Shared Growth and Job Creation in Africa - March 2008

  13. Main findings • Fall in GDP per capita: associated with fall in labor productivity due to substantial labor influx into agriculture. • Fall inpoverty incidence: due to higher employment in households just below the poverty line. • Fall in poverty depth: due to higher hourly earnings of the poor (higher primary, larger share of secondary and tertiary). • Fall in inequality: higher earnings of the poor, lower earnings of the non-poor. World Bank & CSAE - Shared Growth and Job Creation in Africa - March 2008

  14. Assessment and next steps • Exploration of growth – labor – poverty linkages • Useful information for Madagascar • Illustrative for other countries • Link between labor productivity and labor income • Role of agricultural prices and products • More specific policy guidance for poverty reduction through labor World Bank & CSAE - Shared Growth and Job Creation in Africa - March 2008

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