How Large Is the Private Sector in Africa? Evidence from National Accounts and Labor Markets

In recent years, the private sector has been recognized as a key engine of Africa's economic development. Yet, the most simple and fundamental question remains unanswered: how large is the African private sector? We present novel estimates of the size of the private sector in 50 African countries derived from the analysis of national accounts and labor market data. Our results point to a relatively large size of the African private sector. National account data shows that this accounts for about 2/3 of total investments, 4/5 of total consumption and 3/4 of total credit. In relative terms, large private sector countries are concentrated in Western Africa (Cote d'Ivoire, Guinea, Niger, Senegal and Togo), Central Africa (Cameroun, Republic of Congo) and Eastern Africa (Kenya, Sudan, Uganda and Tanzania), with the addition of Mauritius. Countries with small private sectors include a sample of oil-exporters (Algeria, Angola, Equatorial Guinea, Libya and Nigeria), some of the poorest countries in the continent (Burundi, Burkina Faso, Guinea Bissau, Mali and Sao Tome e Principe), Zambia and Botswana. Over the last ten years, the size of the private sector has been contracting significantly in oil exporting countries, although the variation in its size does not appear to be significantly correlated with growth performance. Labor market data reinforces the idea of a large private sector, which provides about 90% of total employment opportunities. However, most of this labor is informal and characterized by low productivity: permanent wage jobs in the private sector account on average for only 10% of total employment (a share similar to that provided by public administration and state owned enterprises). South Africa is the notable exception, with formal wage employment in the private sector representing 46% of total employment. Finally, we find evidence of negative private sector earning premiums, suggesting that market distortions abound. These are likely to prevent the efficient allocation of human resources, and to reduce the overall productivity of the African economies.private sector size, private sector development, private consumption, private investment, national accounts, private sector employment, private sector earnings, labor markets, Africa

Underage Brides and Grooms' Education

Public intervention addressing the issue of underage marriage emphasizes policies such as girls' education and enforcement of age-of-consent laws as promising avenues for ending this harmful practice. It has been argued, however, that such policies will work better in societies where there are supported by men. Yet, there is no study analyzing the role of males' characteristics in relation to early marriage. This paper examines the causal effect of a male's education on the likelihood that he marries an underage girl. Using micro-level data from Nigeria in combination with plausible instrumental variables that address potential endogeneity issues, we find that having more years of schooling significantly reduces the probability of marrying an underage girl. Importantly, we show that this negative relationship is not a mere mechanical effect reflecting the endogeneity between schooling and marriage-timing decisions. Moreover, we find that this relationship is weaker in communities where norms that cast women in submissive roles are stronger. We develop a model that explains this causal effect as resulting from the complementarity between father's and mother's education in the production of child quality

Underage Brides and Grooms' Education

Public intervention addressing the issue of underage marriage emphasizes policies such as girls' education and enforcement of age-of-consent laws as promising avenues for ending this harmful practice. It has been argued, however, that such policies will work better in societies where there are supported by men. Yet, there is no study analyzing the role of males' characteristics in relation to early marriage. This paper examines the causal effect of a male's education on the likelihood that he marries an underage girl. Using micro-level data from Nigeria in combination with plausible instrumental variables that address potential endogeneity issues, we find that having more years of schooling significantly reduces the probability of marrying an underage girl. Importantly, we show that this negative relationship is not a mere mechanical effect reflecting the endogeneity between schooling and marriage-timing decisions. Moreover, we find that this relationship is weaker in communities where norms that cast women in submissive roles are stronger. We develop a model that explains this causal effect as resulting from the complementarity between father's and mother's education in the production of child quality

Underage Brides and Grooms' Education

Public intervention addressing the issue of underage marriage emphasizes policies such as girls' education and enforcement of age-of-consent laws as promising avenues for ending this harmful practice. It has been argued, however, that such policies will work better in societies where they are supported by men. Yet, there is no study analyzing the role of males' characteristics in relation to early marriage. This paper examines the causal effect of a male's education on the likelihood that he marries an underage girl. Using micro-level data from Nigeria in combination with plausible instrumental variables that address potential endogeneity issues, we find that having more years of schooling significantly reduces the probability of marrying an underage girl. Importantly, we show that this negative relationship is not a mere mechanical effect reflecting the endogeneity between schooling and marriage-timing decisions. Moreover, we find that this relationship is weaker in communities where norms that cast women in submissive roles are stronger. We develop a model that explains this causal effect as resulting from the complementarity between father's and mother's education in the production of child quality

Polygyny, Child Education, Health and Labour: Theory and Evidence from Mali

In this paper, we use the Demographic and Health Survey conducted in Mali to compare children in polygynous families and their counterparts in monogamous families. We also analyse the link between the mothers' order of marriage and their children's outcomes. We finally propose a theoretical model to rationalise our findings. Our results show that children in polygynous families are less enrolled in school, progress less at school and do less domestic household work compared to children from monogamous families. For polygynous families, we found that educational enrolment and progress of children of the first wife are higher than that of children of the second and subsequent wives. Moreover, weight-for-height and body mass index are both lower for children of first wives compared to children of second and subsequent wives. Children of first wives work more at home compared to children of second and subsequent wives. Our theoretical model predicts that if fathers discriminate against their first wives and if effort at school is positively correlated to the father's discrimination, then, on average, children of first wives will perform better at school but will consume less and will have a lower health outcomes compared to children of second wive

Polygyny, Child Education, Health and Labour: Theory and Evidence from Mali

In this paper, we use the Demographic and Health Survey conducted in Mali to compare children in polygynous families and their counterparts in monogamous families. We also analyse the link between the mothers' order of marriage and their children's outcomes. We finally propose a theoretical model to rationalise our findings. Our results show that children in polygynous families are less enrolled in school, progress less at school and do less domestic household work compared to children from monogamous families. For polygynous families, we found that educational enrolment and progress of children of the first wife are higher than that of children of the second and subsequent wives. Moreover, weight-for-height and body mass index are both lower for children of first wives compared to children of second and subsequent wives. Children of first wives work more at home compared to children of second and subsequent wives. Our theoretical model predicts that if fathers discriminate against their first wives and if effort at school is positively correlated to the father's discrimination, then, on average, children of first wives will perform better at school but will consume less and will have a lower health outcomes compared to children of second wive

3 essays in the microeconomics of development

Dans cette thèse, j’explore les facteurs qui minent les chances de vie des enfants dans les pays en développement, avec un accent particulier sur les pays d’Afrique sub-saharienne. Cette thèse est composée de 3 essais. Les deux premiers (chapitres 1 et 2) se concentrent sur le mariage précoce des jeunes filles, tandis que le troisième et dernier essai (chapitre 3) met l’accent sur la pauvreté des enfants, spécifiquement à la question de la concordance/discordance entre mesures monétaires et multidimensionnels de ce phénomène. Le mariage précoce est pratiqué dans toutes les régions du monde, mais c’est en Afrique subsaharienne que le phénomène est prédominant, 8 des 10 pays avec les prévalences de mariage précoce les plus élevés sont sur le continent. En 2010, 34% (environ 67 millions) de jeunes femmes âgées de 20 à 24 à l’échelle mondiale ont été marié avant leur dix-huitième anniversaire et environ 12% ont été marié avant l’âge de 15 ans. L’Organisation des Nations Unies pour la population (FNUAP) estime que si cette tendance continue, 142 millions de filles seront mariées avant 18 ans dans la prochaine décennie (UNFPA, 2012). Dans les pays où cette pratique est prédominante, il reflète les normes basées sur le genre qui façonnent la vie des adolescentes, contraignant leur choix et capacités de vie en limitant leur accès à l’éducation, leur mobilité ainsi que leur autonomisation au sein du ménage en particulier sur les décisions sexualité et de fertilité. La lutte contre le mariage des enfants en Afrique subsaharienne et ailleurs peut avoir des retombées positives importantes pour la réalisation de l’Agenda 2030 des Nations Unies pour le développement durable. La littérature existante sur le mariage précoce des filles met en évidence le rôle conjoint joué par les facteurs de l’offre—à savoir, pourquoi les parents marient leurs filles mineures—et les facteurs de la demande — à savoir, pourquoi les hommes entrent en relations conjugales avec des adolescentes — comme déterminants de la prévalence de cette pratique dans les pays en développement. Pour que cette évidence empirique soit convertible en action efficace, il est primordial d’avoir une évaluation quantitative de ces deux facteurs de demande et d’offre dans l’explication de ces taux de prévalence élevés. Le premier essai de ma thèse vise à combler cette lacune en mesurant l’importance quantitative de la valeur intrinsèque que les hommes attachent à avoir des épouses adolescentes dans le cadre du Niger. Le deuxième essai fait suite au premier, en développant un modèle de demande de mariage précoce avec une application empirique au Nigeria, pour comprendre pourquoi une grande partie des hommes dans les pays en développement se marient à des jeunes filles mineures. Le troisième essai explore théoriquement et empiriquement les causes de la discordance observée entre la pauvreté monétaire et multidimensionnelle des enfants. Comme les deux premiers essais, il est empiriquement fondé sur les expériences des pays d’Afrique subsaharienne, avec une application à la Tanzanie. Cet essai relie théoriquement les dimensions du bien-être des enfants, tel que la nutrition et la scolarisation, aux caractéristiques socioéconomiques des parents, tel que le revenu et l’éducation parentale. Le modèle prédit que l’éducation des parents influe sur le niveau de discordance entre la pauvreté monétaire et multidimensionnelle des enfants. Ce résultat théorique est testé empiriquement en utilisant les données de la Tanzanie. Les résultats montrent que l’éducation des parents agit négativement sur la probabilité qu’un enfant non-pauvre monétairement souffre de privations de base, et agit positivement sur la probabilité qu’un enfant pauvre monétairement ne souffre pas de privations de base. Dans l’ensemble, ces trois essais contribuent à faire progresser notre connaissance des facteurs qui contraignent les chances de vie des enfants en Afrique subsaharienne. En particulier, ma thèse suggère que les interventions politiques qui ne tiennent pas compte de la résistance locale à la mise en oeuvre des programmes de prévention du mariage précoce des filles peuvent être confrontés à des rendements incertains (Essai 1 et 2). Il met également en évidence un autre canal par lequel l’éducation des parents peut jouer un rôle important dans l’amélioration des chances de vie des enfants dans les pays en développement (Essai 3).In this thesis, I investigate factors that undermine children’s life chances in developing countries, with a particular focus on sub-Saharan African (SSA) countries . Three essays comprise this thesis. The first two (Chapters 1 and 2) focus on the life chances of adolescent girls in relation to the issue of child marriage, while the third essay (Chapter 3) focuses on child poverty, in relation to the issue of concordance/discordance between monetary and multidimensional measures of this phenomenon. Child marriage is found in almost all regions of the world, but SSA gets the brunt of it, as it is home to 8 of the 10 countries worldwide reporting the highest prevalence rates of this phenomenon. In 2010, 34% (about 67 million) of young women aged 20-24 globally were married before their eighteenth birthday and about 12% were married by age 15. The United Nation Population Fund (UNFPA) estimates that if present trends continue, 142 million girls will be married before age 18 in the next decade (UNFPA, 2012). Child marriage has been shown to hamper developing countries girls’ life chances both directly and indirectly (UNFPA, 2012). Where it exists as a mass phenomenon, it reflects gendered norms that shape adolescent girls’ lives through constrained choices and capabilities relative to boys, including a higher care work burden for girls, restricted access to education, limited mobility; limited authority in the family for wives ( particularly over sexuality and fertility decisions). Combating child marriage in SSA and elsewhere may thus yield significant positive spillovers for the achievement of the 2030 United Nation’s Agenda for Sustainable Development. The existing child marriage literature highlights the joint role played by supply-side factors — i.e., why parents marry off their underage daughters— and demand-side factors— i.e., why men enter into marital relationships with underage girls— in driving the prevalence rates of child marriage in the developing world. To turn this empirical finding into effective policy action, however, a quantitative assessment of the relative strength of both demandside and supply-side factors in explaining these high prevalence rates is of paramount importance. The first essay of my thesis aims to fill this knowledge gap by measuring the quantitative importance of the intrinsic value Niger’s men attach to having child brides. The second essay follows up on the first, by developing a demand-side model of child marriage with empirical application to Nigeria, to explain why a large proportion of men in developing countries marry underage girls. The third essay explores both theoretically and empirically the causes of the observed mismatch between monetary and multidimensional child poverty. Like the first two essays, it is empirically grounded in the experiences of SSA countries, with a practical application to Tanzania. This essay theoretically links child outcomes, such as nutritional status and schooling achievements to parental and household characteristics including household income and parental education. The model used to formalize this link predicts that parental education influences the level of the mismatch between monetary and multidimensional child poverty. Empirical evidence drawn from Tanzania NPS data is consistent with this prediction. In particular, results show that parental education is a negative predictor of the probability that a monetarily non-poor child suffers some basic deprivations, and a positive predictor of the likelihood that a monetarily poor child suffers no basic deprivations. Overall, these three essays contribute to advancing our knowledge of factors that constraint children’s life chances in SSA. In particular, my thesis suggests that policy interventions that ignores the extent and causes of local resistance to the implementation of child marriage prevention programs may face uncertain results (Essay 1 and Essay 2). It also highlights another channel through which parental education can play an important role in the improvement of children’s life chances in developing countries (Essay 3)