Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/104665
Authors: 
Nagler, Paula
Naudé, Wim
Year of Publication: 
2014
Series/Report no.: 
IZA Discussion Papers 8524
Abstract: 
Although non-farm enterprises are ubiquitous in rural Sub-Saharan Africa, little is yet known about their productivity. In this paper we contribute to filling this gap by providing estimates of labor productivity in enterprises for Ethiopia, Malawi, Nigeria, and Uganda. Using the World Bank's LSMS-ISA database, we find that rural enterprises are on average less productive than those in urban areas, and that female-owned enterprises are less productive than male-owned enterprises. By estimating Heckman selection and panel data models, we find that education and access to credit are associated with higher labor productivity, while households that experience shocks operate less productive enterprises. Furthermore we provide evidence that enterprises that operate throughout the year are more productive. We conclude that gender, education, shocks, access to finance, and location matter for labor productivity in rural Africa, and that policy decisions tackling the shortcomings could significantly contribute to a better business environment and increased labor productivity.
Subjects: 
entrepreneurship
informal sector
labor productivity
rural development
Sub-Saharan Africa
JEL: 
J43
L26
M13
O13
O55
Q12
Document Type: 
Working Paper

Files in This Item:
File
Size
410.69 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.