Is There a Link Between Casual Employment and Export-Orientation of Firms? The Case of Kenya's Manufacturing Sector

Abstract

Empirical evidence on the link between trade and employment outcomes in Africa is severely limited. The paper analyses employment outcomes, that is, the rise in casual employment in Kenya's manufacturing sector in relation to firms' export orientation. While exporting firms generally account for a higher proportion of employment in the manufacturing sector, the proportion of workers in exporting firms declined by over 20% between the early 1990s and 2003. On the other hand, the proportion of casual workers employed in manufacturing firms increased over the same period. However, the empirical results show no strong evidence of "exporting" significantly influencing the proportion of casual workers employed by firms. The combination of an increasingly skilled labour force in Kenya and deepening casualisation among workers points to a conundrum that requires further analysis. That notwithstanding, the results suggest a need for policy focus not only on job creation, but also on the quality of jobs created.

A Discrete Time Analysis of Export Duration in Kenya: 1995-2014

“…Sub-Saharan Africa (SSA) is the main export market for Kenya at over 45% with Uganda, Tanzania, United Kingdom, Netherlands and United States as the major destinations (ROK, 2015). 19611965196919731977197919811985198919931997200120112012 The survival of Kenya's exports to SSA and the world has been in decline especially after 2011.…”

“…Furthermore, skilled labour is critical for exports as it is positively resonates with technological advancements besides reducing cost of production (Fuguzza, 2004, UNCTAD, 2005, Majeed et al, 2006, Were, 2011. Therefore, a review of the effect of labour force on export survival is critical given Kenya's high labour-endowment.…”

“…remains limited (Were, 2011) and it has not been covered by export survival studies. Hence, it will be critical to test the effect of these variables on export survival.…”

Gender, Development and Economic Growth in Sub-Saharan Africa

“…In most SSA countries, the majority of the employment opportunities have been generated in export processing zones (EPZs) associated with clothing and textiles and non-traditional agricultural exports (NTAEs) such as the cut flower industry in Kenya. The expansion of these industries has provided employment opportunities for women, but there have been concerns about the unfavourable working conditions in these jobs, the increased casualization of the workforce, and low wages (Dolan and Southerland, 2002;Tallontire et al, 2005;Were, 2011). Even in industries that are female-dominated, such as garments, male worker incomes may improve more than female workers as a result of trade expansion, as Nicita and Razzaz (2003) show for Madagascar.…”

Gendered perspectives on economic growth and development in sub-Saharan Africa

“…Similar to SIEs, these export-oriented sectors thrive on the availability of cheap labour, notably provided by women. Poor working conditions and low pay persist (Tallontire et al 2005;Were 2011;Chan 2013), with challenges ranging from poor health and safety standards, inadequate leave entitlements, to sexual harassment, and wage discrimination.…”