Hardy, M., Kagy, G., Demeke, E., Witte, M. and Meyer, C.J. (2024). The impact of firm downsizing on workers: Evidence from Ethiopia's ready-made garment industry World Development, 176:1--9.
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Affiliated author
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Publication year2024
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JournalWorld Development
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.