Urban wage behavior and food price inflation: the case of Ethiopia [Research Note]

This study examines the trends and behavior of urban wages in Ethiopia during the country’s recent inflationary episodes. We use the CSA Consumer Price Survey to construct a real wage series for the urban poor, and to conduct formal econometric tests of whether wages adjust to food and non-food pric...

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Main Authors: Headey, Derek D., Bachewe, Fantu Nisrane, Worku, Ibrahim, Dereje, Mekdim, Taffesse, Alemayehu Seyoum
Format: Brief
Language:Inglés
Published: International Food Policy Research Institute 2012
Subjects:
Online Access:https://hdl.handle.net/10568/153921
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author Headey, Derek D.
Bachewe, Fantu Nisrane
Worku, Ibrahim
Dereje, Mekdim
Taffesse, Alemayehu Seyoum
author_browse Bachewe, Fantu Nisrane
Dereje, Mekdim
Headey, Derek D.
Taffesse, Alemayehu Seyoum
Worku, Ibrahim
author_facet Headey, Derek D.
Bachewe, Fantu Nisrane
Worku, Ibrahim
Dereje, Mekdim
Taffesse, Alemayehu Seyoum
author_sort Headey, Derek D.
collection Repository of Agricultural Research Outputs (CGSpace)
description This study examines the trends and behavior of urban wages in Ethiopia during the country’s recent inflationary episodes. We use the CSA Consumer Price Survey to construct a real wage series for the urban poor, and to conduct formal econometric tests of whether wages adjust to food and non-food price inflation over the short run and the long run. We find that although real wages were trending upward in the early 2000s, the rapid inflation episodes of 2007–2008 and 2010–2011 led to serious short run declines in purchasing power, on the order of 10–26% depending on the episodes, the region, and the wage indicator analyzed. The severity of these shocks justifies further consideration of social safety nets for urban areas.
format Brief
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spelling CGSpace1539212025-11-06T04:35:23Z Urban wage behavior and food price inflation: the case of Ethiopia [Research Note] Headey, Derek D. Bachewe, Fantu Nisrane Worku, Ibrahim Dereje, Mekdim Taffesse, Alemayehu Seyoum poverty inflation (finance) urban areas economics urban poverty remuneration food prices This study examines the trends and behavior of urban wages in Ethiopia during the country’s recent inflationary episodes. We use the CSA Consumer Price Survey to construct a real wage series for the urban poor, and to conduct formal econometric tests of whether wages adjust to food and non-food price inflation over the short run and the long run. We find that although real wages were trending upward in the early 2000s, the rapid inflation episodes of 2007–2008 and 2010–2011 led to serious short run declines in purchasing power, on the order of 10–26% depending on the episodes, the region, and the wage indicator analyzed. The severity of these shocks justifies further consideration of social safety nets for urban areas. 2012 2024-10-01T13:58:23Z 2024-10-01T13:58:23Z Brief https://hdl.handle.net/10568/153921 en Open Access application/pdf International Food Policy Research Institute Ethiopian Development Research Institute Headey, Derek D.; Bachewe, Fantu Nisrane; Worku, Ibrahim; Dereje, Mekdim; Taffesse, Alemayehu Seyoum 2012. Urban wage behavior and food price inflation: the case of Ethiopia [Research Note]. https://hdl.handle.net/10568/153921
spellingShingle poverty
inflation (finance)
urban areas
economics
urban poverty
remuneration
food prices
Headey, Derek D.
Bachewe, Fantu Nisrane
Worku, Ibrahim
Dereje, Mekdim
Taffesse, Alemayehu Seyoum
Urban wage behavior and food price inflation: the case of Ethiopia [Research Note]
title Urban wage behavior and food price inflation: the case of Ethiopia [Research Note]
title_full Urban wage behavior and food price inflation: the case of Ethiopia [Research Note]
title_fullStr Urban wage behavior and food price inflation: the case of Ethiopia [Research Note]
title_full_unstemmed Urban wage behavior and food price inflation: the case of Ethiopia [Research Note]
title_short Urban wage behavior and food price inflation: the case of Ethiopia [Research Note]
title_sort urban wage behavior and food price inflation the case of ethiopia research note
topic poverty
inflation (finance)
urban areas
economics
urban poverty
remuneration
food prices
url https://hdl.handle.net/10568/153921
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