Fiscal incentives for youth unemployment and informal business in Ethiopia

Policy brief Firms

We use employment and tax data to develop guidance for the Ethiopian government on trade-offs as they face challenges related to fiscal consolidation and employment creation.

  • With 70% of its population under 30 years of age, and 20 million people currently unemployed, a policy priority for Ethiopia is to address the challenges of youth employment and informal business transition to higher productivity employment.
  • We use employment and tax data to develop guidance for the authorities on trade-offs as they face challenges related to fiscal consolidation and employment creation.
  • This policy brief identifies efficient public services that should be expanded to facilitate the transition of informal enterprises to providing more productive jobs, along with associated fiscal implications.