Using ADePT Labor for Labor Market Analysis Using Rwanda as an Example Paul Cichello May 1, 2009 The Employment Lab: New Diagnostic Tools for Employment Focused Development

Start with Demonstration

While it’s running, let’s start in on overview

Data requirements Nationally-representative household survey. Key: individual level earnings data; –want greatest coverage of workers possible Differentiate over worker type and sector of employment Want a labor market module and an income/consumption expenditure module. Ideally repeated over time

An example Table 1-4 : Earnings, Poverty and Inequality by Employment Categories Changes Non- agriculture Agriculture Non- agriculture Agriculture Non- agriculture Agriculture Wage and salaried Median earnings15.120,08.760, , , , ,8 Median hourly earnings6,0163,3468,8646,160-2,847-2,814 Low earnings rate %51,676,651,476,30,2 Poverty rate among low earners %42,775,142,979,4-0,2-4,3 Gini coefficient52,650,277,757,0-25,2-6,8 Individual self-employed Median earnings10.080, , , , ,0-279,4 Median hourly earnings4,912,76,48,8-1,53,9 Low earnings rate %69,651,269,963,8-0,4-12,6 Poverty rate among low earners %39,11069,88041,01468,973-1,9040,906 Gini coefficient61,270,654,772,86,5-2,2

First set: Overview of the Labor Force Table 1.1: broad overview. It will help you: –determine if unemployment is a problem to focus on or if quality of employment (low earnings, etc.) should be focus –the level of child labor and more –As with all tables, you can see changes over time Table 1.3: Where employment is located by type of work –You can use designation you like: formal/informal; not just employment type –It will also break into ag/non-ag Table 1.4: Welfare status for each worker type - including median earnings, low earnings rates, inequality of earnings, etc. Table 1.5a: Shares of workers by sector Table 1.5b: Share of workers by education (and broken ag/non-ag)

Next Set: Linking Poverty and Labor Market Help you identify where poverty is concentrated –type of workers & sectors This section uses two ways of calculating outcomes: –a) calculate it using individual sector of employment; –b) calculate it using the sector of employment of the household head. The Tables in the Annex are used for follow up once an initial investigation reveals an area of interest: –They give a disaggregation of main indicators by different groups for unemployment, low earnings, child labor, etc.

ADePT software and resources are available on the web: –a general guide for completing labor market analysis; –an ADePT users guide with definitions for LM variables needed by ADePT and example of what the output files look like; –a technical users guide for running ADePT; –a link to download ADePT software This requires STATA to run but can use either STATA or SPSS data files as inputs Where do you get ADePT Labor? Where do you get ADePT Labor?

Let’s check on our results

Let’s move to ADePT-Gender