Ethiopia has two types of manufacturing firms - big productive firms that are highly automated and don't hire a lot of people, and small unproductive firms thar hire a relative high number but have terrible productivity growth.
This should be the exact opposite of what should happen.
Forgive me if I'm missing something, but what's stopping Ethiopian companies from paying their workers more? Why would a state-set minimum wage be the right move here?
My understanding of the industrial revolution in 1800s England was that the factory jobs actually did pay more and while certainly working conditions weren't great, they were within the same range as agriculture or other potential jobs, so people did want to hold them.
It's hard for me to see how you can develop a manufacturing sector if the jobs in it are not attractive enough to acquire/retain employees.
Regarding the kidney pain- in addition to the possibilities mentioned, I wonder if the workers aren’t provided with enough water. Also, if they’re away from home and underpaid I wouldn’t be surprised if their diet isn’t good.
Ethiopia has two types of manufacturing firms - big productive firms that are highly automated and don't hire a lot of people, and small unproductive firms thar hire a relative high number but have terrible productivity growth.
This should be the exact opposite of what should happen.
https://drodrik.scholar.harvard.edu/publications/africas-manufacturing-puzzle-evidence-tanzanian-and-ethiopian-firms
https://filmmakermagazine.com/126338-i-dont-think-we-ever-expected-to-see-a-carbon-copy-of-chinas-industrial-experience-in-ethiopia-and-we-certainly-didnt-max-duncan-and-xinyan-yu-on-their-tribeca-debut/
Forgive me if I'm missing something, but what's stopping Ethiopian companies from paying their workers more? Why would a state-set minimum wage be the right move here?
My understanding of the industrial revolution in 1800s England was that the factory jobs actually did pay more and while certainly working conditions weren't great, they were within the same range as agriculture or other potential jobs, so people did want to hold them.
It's hard for me to see how you can develop a manufacturing sector if the jobs in it are not attractive enough to acquire/retain employees.
Regarding the kidney pain- in addition to the possibilities mentioned, I wonder if the workers aren’t provided with enough water. Also, if they’re away from home and underpaid I wouldn’t be surprised if their diet isn’t good.
Yes, the lack of water is sadly also stated as a possible reason.
Thanks for reminding us that development is a multifaceted process.