<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>The effects of macroeconomic shocks and labour market institutions on employment in sub-Saharan African countries are examined in this study. Using a sample of 27 SSA countries for the period 2007 to 2018, both linear and interactive relationships are investigated. The results show that labour market institutions (especially in terms of wage flexibility) dampen the effects of shocks on modern employment but amplify the effects of shocks on informal employment in the sampled SSA countries. There is also evidence that shocks themselves (especially those emanating from the external sector) do not matter for a huge proportion of employment changes in SSA countries. Rather, the direct effects of shocks on employment are more profound in the formal sector. The study therefore concludes that reforming the informal sector will help to ensure the effectiveness of labour market institutions in mitigating the negative impacts of external shocks on employment in SSA.</p>
</abstract>

The effects of macroeconomic shocks and labour market institutions on employment in sub-Saharan African countries are examined in this study. Using a sample of 27 SSA countries for the period 2007 to 2018, both linear and interactive relationships are investigated. The results show that labour market institutions (especially in terms of wage flexibility) dampen the effects of shocks on modern employment but amplify the effects of shocks on informal employment in the sampled SSA countries. There is also evidence that shocks themselves (especially those emanating from the external sector) do not matter for a huge proportion of employment changes in SSA countries. Rather, the direct effects of shocks on employment are more profound in the formal sector. The study therefore concludes that reforming the informal sector will help to ensure the effectiveness of labour market institutions in mitigating the negative impacts of external shocks on employment in SSA.

Macroeconomic Shocks and Employment in sub-Sharan Africa: Do Labour Market Institutions Matter?

Zagreb International Review of Economics and Business

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

The effects of macroeconomic shocks and labour market institutions on employment in sub-Saharan African countries are examined in this study. Using a sample of...

Macroeconomic Shocks and Employment in sub-Sharan Africa: Do Labour Market Institutions Matter?

Data publikacji: 20 lis 2022

Zakres stron: 97 - 118

DOI: https://doi.org/10.2478/zireb-2022-0017

Słowa kluczowe
hiring and firing, sectoral employment, terms of trade, vulnerable employment, wage flexibility

© 2022 Abidemi C. Adegboye et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Macroeconomic Shocks and Employment in sub-Sharan Africa: Do Labour Market Institutions Matter?

Data publikacji: 20 lis 2022

Zakres stron: 97 - 118

DOI: https://doi.org/10.2478/zireb-2022-0017

Słowa kluczowehiring and firing, sectoral employment, terms of trade, vulnerable employment, wage flexibility

© 2022 Abidemi C. Adegboye et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Słowa kluczowe
hiring and firing, sectoral employment, terms of trade, vulnerable employment, wage flexibility