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Services, Jobs, and Economic Development in Africa

Author

Listed:
  • Leonardo Baccini
  • Matteo Fiorini
  • Bernard Hoekman
  • Marco Sanfilippo

Abstract

This article presents data and analyzes the structure of employment in 13 African economies at the administrative unit level, with a focus on the role of services. We provide two novel pieces of evidence. First, we present a descriptive snapshot of changes in the composition of employment over time and across geographies. This reveals evidence of structural transformation toward services and service-related occupations at subnational level and provides a fine-grained overview of who works in services and where and how this has changed over time. Second, we provide correlations between services and economic development, using per capita nightlight luminosity as a proxy. We document (1) a strong positive association between high skills services and economic development; (2) substantial heterogeneity across industries within services; and (3) a mediating role of market conditions and technology in the relation between services and economic development. Overall, our work highlights an important role of services activities for employment, skills, and economic development in Africa.

Suggested Citation

  • Leonardo Baccini & Matteo Fiorini & Bernard Hoekman & Marco Sanfilippo, 2023. "Services, Jobs, and Economic Development in Africa," The World Bank Research Observer, World Bank, vol. 38(1), pages 147-178.
    • Handle: RePEc:oup:wbrobs:v:38:y:2023:i:1:p:147-178.
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    File URL: http://hdl.handle.net/10.1093/wbro/lkac006
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    Keywords

    services; economic development; structural transformation; growth; servicification; Africa; employment;
    All these keywords.

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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