PublicDisclosureAuthorizedPolicyResearchWorkingPaper10756PublicDisclosureAuthorizedTheRoleofFirmDynamicsinAggregateProductivityandFormalJobFlowsPublicDisclosureAuthorizedinZambiaLabanSimbeyeEliyaLunguAndreyaKumwendaEndaBandaJonathanMsoniRyanKuoPublicDisclosureAuthorizedFinance,CompetitivenessandInnovationGlobalPracticeApril2024PolicyResearchWorkingPaper10756Abstractservicesectors.Bycontrast,laborproductivitygrewinagricultureandremainedflatinminingoverthesameZambia’sprivatesectormustdeliverqualityjobsatscaletoperiod.Realwagetrendsforformalworkershavemostlykeepupwithitsexpandingworkingagepopulation,con-mirroredlaborproductivitydynamics,declining40-50per-tributetoeconomictransformation,andreducepoverty.centacrossnon-agriculturesectorsbutgrowingslightlyinThisentailsboththecreationofhigh-qualityjobsandpro-agriculture,largelydrivenbywithin-firmshiftsratherthanductivityimprovementamongexistingjobsandfirms.Thisbetween-firmorbetween-sectordynamics.Thedeclinesinpaperanalyzesthedynamicsofformalfirmstoidentifythelaborproductivityandwagesreflectbusinessenvironmentdriversandbarrierstoproductivity,formalemployment,challengesrelatedtoaccesstofinanceandelectricity,asandformalwagegrowthinZambia.LeveragingfirmandwellasburdensomeformalcompliancerequirementsandworkeradministrativetaxdatafromZambia,thepapercompetitionwiththeinfor...
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