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Africa > Uganda

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Cover Finance & Development
The Value of Vocation
Maria Petrakis

Vocational skills training has multiple economic benefits
Keywords:
university degree; college graduate; vocational education student; pitman training; university study
Cover IMF Staff Country Reports
Uganda: Selected Issues
International Monetary Fund. African Dept.
This Selected Issues Paper analyzes potential macro-financial risks from cross-sectoral exposures in Uganda by leveraging on the Balance Sheet Approach framework. It presents evidence on the macro-financial linkages in Uganda using the Network Map and Financial Input-Output approaches. On the one hand, the Network Map analysis shows the cross-sectoral exposures in which potential build-up of macro-financial vulnerabilities may arise. On the other hand, the Financial Input-Output tool simulates relevant scenarios in the context of Ugandan economy such as currency depreciation and increases in government interest payments on debt held by banks. The purpose of the scenario exercises is to strengthen the monitoring of the developments in key economic sectors in Uganda. While the banking sector, which dominates the Ugandan financial system, remains fundamentally sound, there are pockets of vulnerabilities resulting from the growing sovereign-bank nexus and cross-border exposures of the Near Field Communication technology sector which require close vigilance.
Keywords:
B. monetary policy framework; reducing job search time; policy rate; youth employment trend; NFC sector; C. youth employment trend; Policy rate response; bank Lending rate; Central bank policy rate; Exchange rates; Women; Sub-Saharan Africa
Cover IMF Staff Country Reports
Reducing Informality to Raise Productivity and Promote Inclusion in Uganda
International Monetary Fund. African Dept.

This paper leverages the 2015 International Labor Organization (ILO) School to Work Transition Survey (SWTS) for Uganda to examine the determinants facilitating the transition of youth workers from informal to formal employment. SWTS enables analysis using micro data pertaining to youth’s prevailing conditions. The analysis indicates that fostering private sector led growth, investing in education and skills development, implementing targeted programs and, advancing gender parity are essential strategies to mitigate informality.
Keywords:
employment opportunity; youth labor market experience; School to Work Transition Survey; job quality; employment outcome; Employment; Informal employment; Labor markets; Sub-Saharan Africa
Cover IMF Working Papers
The Role of Structural Fiscal Policy on Female Labor Force Participation in OECD Countries
Miyoko Asai
,
Qiaoe Chen
,
Mr. Jiro Honda
,
Xingwei Hu
, and
Qianqian Zhang
This paper examines the role of structural fiscal policies to promote female labor force participation and reduce gender gaps in labor markets in 26 OECD countries from 2000 to 2019. As both female labor force participation and many explanatory/control variables clearly exhibit non-stationarity (potentially leading to spurious regression results), we employ a panel vector error-correction model, in contrast with most previous empirical studies on this matter. Our analyses confirm statistically significant positive impacts of government spending on (1) early childcare and education, (2) active labor market programs, and (3) unemployment benefits, all of which would help encourage women to enter the labor force, while (4) an increase in relative tax rate on second earner could have negative impact on female labor force participation.
Keywords:
Fiscal Policy; Gender; Labor Force; OECD; panel unit root; panel vector error-correction model; robustness test; panel VECM result; female LFPR; age group; regression analysis; positive correlation; standard deviation; Women; Active labor market policies; Gender diversity; Unemployment benefits; Global
Cover IMF Working Papers
Search Externalities in Firm-to-Firm Trade
I develop a model of firm-to-firm search and matching to show that the impact of falling trade costs on firm sourcing decisions and consumer welfare depends on the relative size of search externalities in domestic and international markets. These externalities can be positive if firms share information about potential matches, or negative if the market is congested. Using unique firm-to-firm transaction-level data from Uganda, I document empirical evidence consistent with positive externalities in international markets and negative externalities in domestic markets. I then build a dynamic quantitative version of the model and show that, in Uganda, a 25% reduction in trade costs led to a 3.7% increase in consumer welfare, 12% of which was due to search externalities.
Keywords:
Firm-to-Firm Trade; VAT Data; Search-and-Matching; Importing; transport cost reduction; buyer-supplier search; search externality; welfare gains from trade; consumer welfare; Imports; Labor market frictions; Search models; Value-added tax; East Africa; Global
Cover Finance & Development
Youth Rising
Mr. David Amaglobeli
,
Ms. Era Dabla-Norris
, and
Vitor Gaspar

Finance & Development, March 2020

Keywords:
FD; F&D; country; shrinking population; tried-and-tested policy solution; interest rate; policy choices matter; dependency ratio; tala bill; finance minister; Aging; Migration; Women; Global; Africa; Europe; Sub-Saharan Africa; Western Europe; Fez native; daunting labor market; plastic waste problem; slums of Kampala; tech company; Labor markets
Cover IMF Research Bulletin
IMF Research Perspectives: Spring-Summer 2019
The Spring-Summer 2019 issue of the IMF Research Perspectives explores how technology deals with old questions. Articles discuss the ways technological progress and the increased availability of data have helped in some areas, while presenting new challenges for analyzing various matters. The issue also includes an interview with Gita Gopinath, the new director of the IMF Research Department.
Keywords:
IRB; economy; heightened economic risk; investor; energy consumption; asset price; work agenda; investor sentiment; dream job; modeling work; Global; Sub-Saharan Africa; Africa; Consumption; Asset prices; Personal income; Robotics; Income; IMF research perspective; measuring sentiment; director of the research DepartmentTechnological change; future of work; impact of Africa
Cover IMF Staff Country Reports
Uganda: Selected Issues
International Monetary Fund. African Dept.
This Selected Issues paper tries to answer the question of how to promote employment in Uganda. It also discusses key stylized facts including labor market challenges, an overview of the labor market, and employment characteristics. Although issues relating to the determinants of employment are gaining momentum in Uganda, the literature is largely based on economic reports and qualitative studies. Uganda has implemented some social programs aimed at creating employment specifically for youth and women, though coverage is limited. These programs aim at providing an enabling environment for the private sector to create jobs and build the skills and requisite knowledge to make youth and women more employable. The existing social programs are good initiatives to address some of the labor market issues, though their coverage remains limited with funding constraints identified as one of the main challenges. Creating quality jobs will require comprehensive policies to promote headline growth and ensure inclusive growth, including measures to improve education and address challenges in gender and youth.
Keywords:
ISCR; CR; Uganda; wage; labor market; text; IMF staff calculation; employment sector; employment characteristic; employment opportunity; employment elasticity; Uganda UBOS report; women engagement; agriculture employment; Employment; Women; Labor markets; Sub-Saharan Africa; Global
Cover IMF Staff Country Reports
Uganda
Selected Issues
International Monetary Fund. African Dept.

This Selected Issues paper tries to answer the question of how to promote employment in Uganda. It also discusses key stylized facts including labor market challenges, an overview of the labor market, and employment characteristics. Although issues relating to the determinants of employment are gaining momentum in Uganda, the literature is largely based on economic reports and qualitative studies. Uganda has implemented some social programs aimed at creating employment specifically for youth and women, though coverage is limited. These programs aim at providing an enabling environment for the private sector to create jobs and build the skills and requisite knowledge to make youth and women more employable. The existing social programs are good initiatives to address some of the labor market issues, though their coverage remains limited with funding constraints identified as one of the main challenges. Creating quality jobs will require comprehensive policies to promote headline growth and ensure inclusive growth, including measures to improve education and address challenges in gender and youth.

Keywords:
ISCR; CR; Uganda; wage; labor market; text; employment issue; labor market entrant; employment creation; World Bank enterprise survey
Cover IMF Staff Country Reports
Uganda: Selected Issues
International Monetary Fund. African Dept.
This Selected Issues paper describes Uganda’s experience under the 2013 Policy Support Instrument (PSI). The current 2013 PSI was approved by the IMF’s Executive Board in June 2013 with an initial duration of three years. Overall, performance under this PSI has been assessed to be satisfactory. Most quantitative assessment criteria were met, and macroeconomic stability maintained. However, the pace of structural reforms slowed down compared with the past, and only about half of the structural benchmarks were ultimately met. The experience shows the importance of ensuring commitment to the reforms, explaining them better, and getting broad-based buy-in to achieve progress.
Keywords:
ISCR; CR; Uganda; debt; IMF-World Bank debt sustainability framework; baseline debt projection; exchange rate; interest rate; government debt; IMF staff; PSI focus; Financial sector development; Double taxation; Tax incentives; Public investment and public-private partnerships (PPP); Global; Sub-Saharan Africa; Africa