@article{Alemayehu:249818,
      recid = {249818},
      author = {Alemayehu, Geda and Alem, Abereha},
      title = {Macro policy reform, labor market, poverty and inequality  in urban Ethiopia: a micro- simulation approach},
      journal = {Ethiopian Journal of Economics},
      address = {2006-12},
      number = {683-2016-46859},
      series = {ETHIOPIAN JOURNAL OF ECONOMICS},
      pages = {102},
      year = {2006},
      abstract = {Despite the liberalization program that Ethiopia embarked  upon since 1992
aggregate indicators of poverty and  inequality largely remained unchanged. This
paper addresses  why incomes and inequality largely remained stable at a  time of
fundamental changes in macroeconomic policy  environment. We have used both
data exploratory analysis as  well as earning and occupational choice modelling,
together  with counterfactual simulation, to investigate this issue.  The study showed
that the absence of change in aggregate  measure of poverty and inequality hides an
enormous change  that occurred across different income categories. This  shows the
importance of understanding the labour market to  understand the policy propagation
mechanism through which  macro policy is expected to affect poverty. The study  has
show that although there seem to be limited change in  poverty and inequality at
aggregate level, there is  significant change within and across categories  of
households. Thus different household are affected  differently by the reform. The
level and distribution of  household incomes is found to depend on the structure  of
returns to labour and on the occupational choice the  households made. Thus, policy
effectiveness of poverty  reduction policies could be achieved if we understand  the
workings of the labour market and how it affects both  level and distribution of
income across different  categories of income & sector.},
      url = {http://ageconsearch.umn.edu/record/249818},
      doi = {https://doi.org/10.22004/ag.econ.249818},
}