Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/80941
Authors: 
Page, John
Söderbom, Måns
Year of Publication: 
2012
Series/Report no.: 
WIDER Working Paper 2012/94
Abstract: 
Aid providers frequently link supporting small firms to job creation. Small firms create about half of new jobs in Africa, but they also have higher failure rates. Ignoring firm exit exaggerates net employment growth. Using panel data for Ethiopia, we find that small and large enterprises create similar numbers of net jobs. Moreover, wages in small firms are persistently lower. To create more good jobs aid should target the constraints to the growth of firms of all sizes. Improving the investment climate and new programmes to increase firms' capabilities - through for example management training - offer better prospects for employment creation.
Subjects: 
aid
small enterprise
employment
firm exit
Africa
JEL: 
J23
O14
O17
O19
ISBN: 
978-92-9230-558-1
Document Type: 
Working Paper

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