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Policy options to support the rural job opportunities creation strategy in Ethiopia

Abstract: 

In 2017, the Ministry of Agriculture and Natural Resources of Ethiopia adopted the Rural Job Opportunity Creation Strategy (RJOCS) to address a lack of job opportunities in rural areas and its related effects such as migration to urban areas and poverty. This report, using a dynamic computable general equilibrium model tailored to the Ethiopian context, quantifies several policy options in terms of jobs opportunity creation. This report aims to quantify six policy options employing a dynamic Computable General Equilibrium model developed by the Joint Research Centre (JRC) tailored to the Ethiopian context. The analysis of the Ethiopian economy through multipliers base on a specifically developed database shows that livestock has the greatest employment generation capacity, followed by cash crops, food crops and agri-food industry. This means that polices which focus on rural and agri-food sectors should have great potential to create job opportunities. All scenarios show the capacity of the Ethiopian agriculture and food industry to generate job opportunities and improve condition of workers and their families, with particular positive effects under scenario subsidising agroparks and developing workers skills through education.