Job Market Paper:
Valuing Formalization Amenities: Compensating Differentials in Ghana
In the process of structural transformation, production growth necessitates a reallocation of factors from one sector to another. A very human challenge in this process is the reallocation of labor from agricultural jobs to formalized work--even if the tasks each jobs requires are quite similar. Demand-side frictions in LMIC labor markets then create challenges for connecting workers with work--this via information mismatches, job search risk, and seasonality of labor demand.
We conduct a choice experiment in 74 villages in two districts near an isolated city in northern Ghana to begin to address these labor frictions. In particular, our research focuses on workplace amenities commonly present in formalized jobs and how the provision of these amenities affect a worker's "willingness to pay" for the amenities.
Our research is contextualized further by framing the hypothetical jobs as similar to those offered in Ghana's ongoing public works program. Doing so allows us to draw implications for public works programming.
The most updated version of this paper can be found here: Job Market Paper Link