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International Monetary Fund. African Dept.
This Selected Issues paper offers policy recommendations for Senegal to reach high and sustained growth with the goal of exiting low-income country status. For Senegal to reach Plan Sénégal Emergent (PSE) objectives, reforms under the PSE need to create space for small and medium-sized enterprises and foreign direct investment to thrive. Reform of Senegal’s business environment needs to be accelerated. Macrostructural reforms should be stepped up in the energy sector, in which Senegal still ranks 170th in the world. Progress in the electricity sector can be achieved by continuing to improve reliability of supply and reduce electricity costs. Reform of the taxation system, by simplifying procedures and optimizing the tax rates, is another macro-critical area in which Senegal needs to make significant strides.
Ms. Christine Dieterich, Anni Huang, and Mr. Alun H. Thomas
As labor market data is scarce in Sub-Saharan Africa (SSA), this paper uses household survey data to analyze the determinants of the gender gap in the labor market and its welfare implications for five SSA countries in multinomial logit models with propensity score matching method. The analysis confirms that education opens up opportunities for women to escape agricultural feminization and engage in formal wage employment, but these opportunities diminish when women marry—a disadvantage increasingly relevant when countries develop and urbanization progresses. Opening a household enterprise offers women an alternative avenue to escape low-paid jobs in agriculture, but the increase in per capita income is lower than male-owned household enterprises. These findings underline that improving women’s education needs to be supported by measures to allow married women to keep their jobs in the wage sector.