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Understanding the relationship between growth and employment in Nigeria

Author

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  • Olu Ajakaiye
  • Afeikhena T. Jerome
  • David Nabena
  • Olufunke A. Alaba

Abstract

This study examines the relationship between growth and employment in Nigeria to gain insights into the country's paradox of high economic growth alongside rising poverty and inequality. The methodology adopted is the Shapley decomposition approach, complemented with econometric estimation of the country's employment intensity of growth. The findings indicate that Nigeria's growth over the last decade has been 'jobless' and sustained largely by factor reallocations rather than productivity enhancement.

Suggested Citation

  • Olu Ajakaiye & Afeikhena T. Jerome & David Nabena & Olufunke A. Alaba, 2015. "Understanding the relationship between growth and employment in Nigeria," WIDER Working Paper Series wp-2015-124, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2015-124
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    References listed on IDEAS

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    Cited by:

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    2. Obiakor, Rowland & Akpa, Emeka & Okwu, Andy, 2022. "Economic Size, Uncertainty, and Income Inequality in Nigeria," MPRA Paper 113637, University Library of Munich, Germany.
    3. Rama Lionel Ngenzebuke & Yoko Akachi, 2017. "Female work status and child nutritional outcome in Nigeria," WIDER Working Paper Series wp-2017-196, World Institute for Development Economic Research (UNU-WIDER).
    4. Manoj Atolia & Mr. Prakash Loungani & Milton Marquis & Mr. Chris Papageorgiou, 2018. "Rethinking Development Policy: Deindustrialization, Servicification and Structural Transformation," IMF Working Papers 2018/223, International Monetary Fund.
    5. Adetunji Adeniyi, 2021. "Factors Affecting Sectoral Employment in Nigeria during the Period of Growth (1981-2014)," International Journal of Learning and Development, Macrothink Institute, vol. 11(2), pages 6393-6393, June.
    6. Aradhna Aggarwal, 2018. "Economic Growth, Structural Change and Productive Employment Linkages in India," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 19(1), pages 64-85, March.
    7. Cristina LINCARU & Speranţa PÎRCIOG, 2017. "Decomposing Productivity Changes – Romania’s Counties Case," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(3), pages 166-184, September.
    8. Fashogbon, A. & Mushunje, A., 2018. "Agriculture and Non-Agriculture Job Transitions in Nigeria: the Role of Information, Social Capital and individual characteristics," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276028, International Association of Agricultural Economists.
    9. Adetunji Adeniyi, 2021. "The Pattern of Employment in Nigeria between 1981 and 2014," International Journal of Learning and Development, Macrothink Institute, vol. 11(2), pages 4662-4662, June.
    10. Anthony Orji & Jonathan Emenike Ogbuabor & Jennifer Nkechi Alisigwe & Onyinye Imelda Anthony-Orji, 2021. "Agricultural Financing, Agricultural Output Growth and Employment Generation in Nigeria," European Journal of Business Science and Technology, Mendel University in Brno, Faculty of Business and Economics, vol. 7(1), pages 74-90.
    11. Odozi, John Chiwuzulum & Ikhimalo, Odufa Patience & Awaebe, John & Agbugui, Marian, 2018. "Employment in the Nigerian Agricultural Labour Market: Barriers and Forecast," SocArXiv s9hgv, Center for Open Science.
    12. Speranța PIRCIOG & Cristina LINCARU, 2016. "Job Generation Profile Evaluation For Romania Using Shapley Method," Romanian Economic Business Review, Romanian-American University, vol. 11(2), pages 66-75, June.
    13. Padhi, Balakrushna & Sharma, Himja, 2023. "Changing Contours of Growth and Employment in the Indian Labour Market: A Sectoral Decomposition Approach," Structural Change and Economic Dynamics, Elsevier, vol. 67(C), pages 220-233.
    14. Taleb Awad-Warrad & Buthaina M. A. Muhtaseb, 2017. "Trade Openness and Inclusive Economic Growth: Poverty Reduction through the Growth Unemployment Linkage," International Journal of Economics and Financial Issues, Econjournals, vol. 7(2), pages 348-354.
    15. Favour O. Olarewaju & Oluwafadekemi S. Areo & Adeyemi A. Ogundipe & Toun Y. Ogunbiyi & Abiola J. Asaleye, 2020. "Capital and Labour Productivity: A Comparative Study of Nigeria and South Africa," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 10(12), pages 1384-1395, December.
    16. Mbaye Ahmadou Aly & Gueye Fatou, 2018. "Working Paper 297 - Labor Markets and Jobs in West Africa," Working Paper Series 2424, African Development Bank.
    17. Dukhabandhu Sahoo & Auro Kumar Sahoo & Jayanti Behera & Diptimayee Mishra & Phendulwa Zikhona Makunga, 2021. "Sources of output growth in the countries of the Common Monetary Area and provinces of South Africa," WIDER Working Paper Series wp-2021-31, World Institute for Development Economic Research (UNU-WIDER).
    18. Adetunji Adeniyi, 2021. "Manufacturing Output Growth and Employment in Nigeria," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 10(2), pages 111-119, April.

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