Current Volume 8
Uneven Gains: Sectoral Employment Elasticity and Structural Transformation in Rwanda, 1990-2018
Abstract
Rwanda’s structural transformation has progressed steadily over the past two decades, yet the employment impact of sectoral growth remains uneven and under examined. This study analyzes how output growth in manufacturing and services translates into job creation, using time-series data from 1990 to 2018 drawn from the GGDC Economic Transformation Database and national labor force surveys. Sector-specific employment elasticities are estimated using log-log and first-differenced regression models, complemented by stationarity and cointegration tests. The results show a sharp divergence in employment responsiveness: manufacturing exhibits a high short-run elasticity of 1.02, indicating strong labor absorption potential, while services record a much lower and more volatile elasticity of 0.29. Neither sector demonstrates a stable long-run relationship between output and employment, underscoring the dominance of short-run dynamics in shaping labor market outcomes. Although services account for the bulk of employment, jobs are increasingly concentrated in low-productivity, informal segments. In contrast, manufacturing though smaller offers more inclusive employment prospects when supported by industrial policy. The findings highlight the uneven nature of Rwanda’s employment gains across sectors and underscore the importance of dual-sector strategies to boost both job quantity and job quality as structural transformation advances.
Keywords
Employment elasticity, job creation, structural transformation, manufacturing, services, labor absorption, time-series analysis, Rwanda, inclusive growth, industrial policy.
Citations
IRE Journals:
Mukasa Stanley , Aliyu Umar
"Uneven Gains: Sectoral Employment Elasticity and Structural Transformation in Rwanda, 1990-2018" Iconic Research And Engineering Journals Volume 8 Issue 11 2025 Page 1670-1679
IEEE:
Mukasa Stanley , Aliyu Umar
"Uneven Gains: Sectoral Employment Elasticity and Structural Transformation in Rwanda, 1990-2018" Iconic Research And Engineering Journals, 8(11)
About IRE Journals
IRE Journals is an open access online journals established with an aim to publish high quality of research work in various diciplines. We have more than 6 years in publications. Over 2500+ papers already published.
Important Links
For Authors
Volume 7:
Issue 1, Issue 2, Issue 3, Issue 4, Issue 5, Issue 6, Issue 7, Issue 8, Issue 9, Issue 10, Issue 11, Issue 12Volume 6:
Issue 1, Issue 2, Issue 3, Issue 4, Issue 5, Issue 6, Issue 7, Issue 8, Issue 9, Issue 10, Issue 11, Issue 12Volume 5:
Issue 1, Issue 2, Issue 3, Issue 4, Issue 5, Issue 6, Issue 7, Issue 8, Issue 9, Issue 10, Issue 11, Issue 12Volume 4:
Issue 1, Issue 2, Issue 3, Issue 4, Issue 5, Issue 6, Issue 7, Issue 8, Issue 9, Issue 10, Issue 11, Issue 12Volume 3:
Issue 1, Issue 2, Issue 3, Issue 4, Issue 5, Issue 6, Issue 7, Issue 8, Issue 9, Issue 10, Issue 11, Issue 12