The impact of firm downsizing on workers: Evidence from Ethiopia’s ready-made garment industry

B-Tier
Journal: World Development
Year: 2024
Volume: 176
Issue: C

Authors (5)

Hardy, Morgan (New York University Abu Dhabi) Kagy, Gisella (not in RePEc) Demeke, Eyoual (not in RePEc) Witte, Marc (not in RePEc) Meyer, Christian Johannes (not in RePEc)

Score contribution per author:

0.402 = (α=2.01 / 5 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We analyze matched employee–employer data from Ethiopia’s largest special economic zone during a period of downsizing pressure from the COVID-19 world import demand shock. We observe substantial job displacement during the shock peak, particularly for new hires. These largely female and rural-to-urban migrants persistently “fall off the employment ladder”, remaining unemployed both within and outside the zone even after employers have recovered from the shock. We observe high levels of urban-centered food insecurity and depression symptoms during the crisis peak, regardless of employment status. Our findings highlight the importance of social protection policies within export-oriented development strategies.

Technical Details

RePEc Handle
repec:eee:wdevel:v:176:y:2024:i:c:s0305750x23002309
Journal Field
Development
Author Count
5
Added to Database
2026-01-25