Person:
Raju, Dhushyanth

Social Protection and Jobs Global Practice, World Bank
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Education, Health, Nutrition, Labor, Poverty, Risk
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Social Protection and Jobs Global Practice, World Bank
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Last updated: September 15, 2023
Citations 58 Scopus

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Now showing 1 - 2 of 2
  • Publication
    Barriers to Growth-Enhancing Structural Transformation: The Role of Subnational Differences in Intersectoral Productivity Gaps
    (World Bank, Washington, DC, 2021-06) Paul, Saumik; Raju, Dhushyanth
    The movement of workers from the farm sector to a more productive nonfarm sector has failed to generate significant gains in labor productivity in recent decades in many developing countries. This paper offers a new perspective on the barriers to growth-enhancing structural transformation, combining structural modeling with enterprise census data from Ghana. The paper argues that subnational differences in the intersectoral productivity gap between the nonfarm informal and formal sectors constrain the productivity gain from structural transformation. In Ghana, intersectoral productivity gaps among the richer regions are on average three times larger than among the poorer regions. The disparity in regional intersectoral productivity gaps is modeled as reflecting the disparity in the regional misallocation of labor between the informal and formal sectors. Misallocation is identified as the output wedge between the informal and formal sectors. Simulations suggest that a more productive nonfarm informal sector reduces the disparity in regional intersectoral productivity gaps and, in turn, increases national productivity and the contribution of structural transformation to national productivity. For example, a 90-percent reduction in the disparity in regional intersectoral productivity gaps raises Ghana’s national aggregate productivity by 11.9 percent and the contribution of structural transformation to productivity by 19.7 percent.
  • Publication
    Structural Transformation and Labor Market Performance in Ghana
    (World Bank, Washington, DC, 2020-11-24) Nxumalo, Mpumelelo; Raju, Dhushyanth
    Structural transformation can spur economic growth and development if it increases overall productivity growth. A labor market environment that enables workers and enterprises to transition smoothly across sectors and into more productive economic pursuits can enhance the effect of structural transformation on economic growth. This study examines Ghana’s recent record of structural transformation and labor market performance. Based on the findings, the study proposes ways to further transform the country’s economy, in a way that stimulates stronger, sustained growth and produces gainful, productive, and inclusive private employment. The COVID-19 (coronavirus) pandemic and associated global economic crisis have posed a substantial setback to Ghana’s economic progress and plans, but these challenges also underscore the need for structural transformation that can both strengthen economic performance and improve labor conditions and outcomes.