Cross-sectoral movements of labour in a low-income country: Evidence from Uganda

In this project we plan to employ a newly sourced matched employer-employee dataset in Uganda to explore the cross-sectoral and cross-firm movement of labour in a low-income country. Using this data, we aim to shed light on:

1. The extent to which workers are able to progress up the job ladder and match with good and productive employers;
2. The relative importance of employer and employee characteristics in determining earnings and earnings inequality.

Our analysis will provide new evidence on the extent of labour market frictions within and across sectors in a developing country. Although literature on labour market flows in low-income countries is growing, it still mostly relies on labour force surveys. Our contribution is to examine a new source of administrative matched employer-employee data, and to explore to what extent it can be used to shed light on policy-relevant questions about labor market flows.

This project is relevant to the objectives and activities of the Ministry of Gender, Labour, and Social Development as well as the Ministry of Finance of Uganda. Our expected output is to provide a cost-effective dataset that leverages existing administrative data, and to use it to produce stylised facts about labour movements in Uganda that can inform labour market and industrial policy.