nep-iue New Economics Papers
on Informal and Underground Economics
Issue of 2012‒02‒08
two papers chosen by
Catalina Granda Carvajal
Universidad de Antioquia

  1. Anatomy of coping: evidence from people living through the crises of 2008-11 By Heltberg, Rasmus; Hossain, Naomi; Reva, Anna; Turk, Carolyn
  2. Manufacturing firms in Africa: Some stylized facts about wages and productivity By Clarke, George

  1. By: Heltberg, Rasmus; Hossain, Naomi; Reva, Anna; Turk, Carolyn
    Abstract: This paper surveys qualitative crisis monitoring data from sites in 17 developing and transition countries to describe crisis impacts and analyze the responses and sources of support used by people to cope. These crises included shocks to export sectors as a result of the global financial crisis, as well as food and fuel price volatility, in the period from 2008 to early 2011. Respondents reported the crisis had resulted in significant hardships in the form of foregone meals, education, and health care, food insecurity, asset losses, stress, and worsening crime and community cohesion. Although the export-oriented formal sector was most exposed to the global economic downturn, the crises impacts were more damaging for informal sector workers, and some of the adverse impacts will be long-lasting and possibly irreversible. There were important gender and age differences in the distribution of impacts and coping responses, some of which diverged from what has been seen in previous crisis coping responses. The more common sources of assistance were family, friends, and community-based and religious organizations; formal social protection and finance were not widely cited as sources of support in most study countries. However, as the crisis deepened, the traditional informal safety nets of the poor became depleted because of the large and long-lasting shocks that ensued, pointing to the need for better formal social protection systems for coping with future shocks.
    Date: 2012–01–01
    URL: http://d.repec.org/n?u=RePEc:wbk:wbrwps:5957&r=iue
  2. By: Clarke, George
    Abstract: Why have so few countries in Sub-Saharan Africa been successful in export-oriented manufacturing? This paper uses firm-level data from the World Bank’s Enterprise Surveys to discuss this. The paper shows that although firms in most African countries are relatively unproductive, they are more productive on average than firms in other countries at similar levels of development. Further, even though many Africans earn subsistence wages working for informal firms, formal firms have higher labor costs than firms in other low-income countries. The paper discusses several possible reasons for this including the effect of the poor institutional environment on profits and the effect of limited competition on productivity measurement.
    Keywords: Africa; Zambia; Productivity; Manufacturing; Wages; East Asia
    JEL: O25 O14 O12
    Date: 2012–01–21
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:36122&r=iue

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