The Nature of Unemployment Among Young Men in Urban Ethiopia

17 Pages Posted: 20 Jan 2007

See all articles by Pieter M. Serneels

Pieter M. Serneels

University of Oxford - Centre for the Study of African Economies (CSAE)

Abstract

This paper investigates the nature of unemployment among young men in urban Ethiopia and finds that it is concentrated among relatively well-educated first-time job seekers who aspire to a public sector job and spend on average close to four years in unemployment. This is consistent with a segmented labor market model where youngsters queue in unemployment for a good job, as confirmed by an empirical test of the theoretical prediction. We observe a negative (causal) relationship between household welfare and both the incidence and duration of unemployment, indicating that unemployment is concentrated among the relatively worse off urban households, which from a national perspective represent the middle classes, and find suggestive evidence that part of this effect is due to malnutrition during childhood. Job search through social networks is only effective after one has become unemployed, suggesting that networks provide insurance only after exposure to the risk.

Suggested Citation

Serneels, Pieter M., The Nature of Unemployment Among Young Men in Urban Ethiopia. Review of Development Economics, Vol. 11, No. 1, pp. 170-186, February 2007. Available at SSRN: https://ssrn.com/abstract=958424 or http://dx.doi.org/10.1111/j.1467-9361.2007.00389.x

Pieter M. Serneels (Contact Author)

University of Oxford - Centre for the Study of African Economies (CSAE) ( email )

Oxford OX1 3UL
United Kingdom

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