Job finding and job destruction in Accra, Ghana
This study investigates the impact of labour market frictions on prolonged job-search periods and low formal employment levels in Accra, Ghana. Findings suggest that the limited availability and attractiveness of jobs, rather than search frictions, are primary issues.
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Deffebach Policy Brief December 2023.pdf
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- Accra, Ghana, is characterized by low wage employment, high self-employment, and long stints of job search among unemployed or underemployed workers.
- Recent research on labour market interventions across sub-Saharan Africa (SSA) has highlighted specific bottlenecks preventing firms and workers from finding one another. This study assesses the merits of particular frictions at driving long job-search times and low levels of formal employment.
- A diagnostic survey of 450 jobseekers and 113 firms in Accra, Ghana, was conducted.
- The survey shows that search frictions may not be binding constraints causing low growth of the formal labour market. Instead, the low availability and desirability of jobs may drive poor labour market performance, though some search-related policies may be effective in the Accra context.