"The rural nonfarm economy (RNFE) accounts for roughly 25 percent of full-time rural employment and 35-40 percent of rural incomes across the developing world. This diverse collection of seasonal trading, household-based and large-scale agroprocessing, manufacturing and service activities plays...

Ghana has made considerable progress over the last 20 years in sustaining economic growth and reducing poverty. The Government of Ghana has declared its new development goal of reaching middle-income status by 2015. Achieving this goal will require Ghana to double its per capita income over the...

We document that structural change accounts for approximately one-fifth of the total change in labor productivity in Nigeria between 1996 and 2009. Labor moved out of the agricultural and wholesale and retail trade sectors into manufacturing, transportation and communications, business services,...

Rural non-farm development plays a key role in generating employment in many developing countries. Clustering is an important industrial organization in the rural non-farm sector. Based on primary surveys of both urban and rural handloom weaver clusters in Ethiopia which took place in May/June...

"In Ethiopia, while superficial examination suggests strong disincentive effects of food aid on labor supply and agricultural activities, these largely vanish under more careful statistical analysis." from Text

Large gaps in labor productivity between the traditional and modern parts of the economy are a fundamental reality of developing societies. In this paper, we document these gaps and emphasize that labor flows from low-productivity activities to high-productivity activities are a key driver of...