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People migrate both within and between countries to improve their lives and the lives of families left back home. Evidence is growing on the significant returns to voluntary internal and international migration. Wage differentials incentivize people to cross borders and work abroad. Despite positive welfare effects, internal migration can also strain destination communities, particularly urban areas, which can contribute to negative social externalities. The benefits of internal and international labor migration, especially increasing household incomes and reducing poverty, are likely to outweigh costs. Policies in Ethiopia have focused on the negative aspects of migration, but perceptions are changing. This report expands the understanding of voluntary economic migration in Ethiopia. This report presents a comprehensive picture on migration in Ethiopia by synthesizing previous research and complementing existing evidence with new analysis using more recent data, including the latest available 2021 labor force and migration survey (LMS). This report is structured around two broad sections, which aim to provide a comprehensive picture of voluntary internal and international migration in Ethiopia, as well as a section highlighting broad policy implications. Chapter one gives introduction. Chapter two provides an overview of migration in Ethiopia and the latest trends on migration. Chapter three discusses migration motives and effects. Chapter four highlights policy directions to maximize the benefit of migration while minimizing the costs.

Labor market.

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The Ethiopian labor market is facing the dual challenge of creating new employment opportunities for the rapidly expanding labor force and improving the quality of existing jobs in the labor market. This paper estimates an earnings function for the urban wage-employed to understand how investment in human capital shapes labor market outcomes and to what extent human capital returns have been realized. The key findings show that there are significant gains associated with acquiring higher levels of education in the urban labor market. Interestingly, the analysis also finds that the margin of completed primary compared to incomplete primary education is critical in explaining earning gains. This finding has important implications for education policies in Ethiopia, a country in which about 5 percent of gross domestic product is invested in education annually, with nearly half of the budget earmarked for tertiary-level education. Understanding the returns from various levels of education, in different sectors, regions, as well as gender gaps in earnings is critical for thinking about public investment choices and labor market policies that can support nudging market inclusiveness, equity, and efficiency. Investments by the government aimed at incentivizing completion of primary education can go a long way in ensuing higher wages and improving standards of living in Ethiopia.

Economics of Education --- Education --- Employment and Unemployment --- Human Capital --- Labor Market --- Primary Education --- Returns To Education --- Social Protections and Labor --- Urban Employment --- Urban Wage --- Wage Differential --- Wages, Compensation and Benefits

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The COVID-19 pandemic and its negative economic effects create a need for timely data and evidence to help monitor and mitigate the social and economic impacts of the crisis. To monitor the impacts of the COVID-19 pandemic and related containment measures on formal firms in Ethiopia and inform the policy response, the World Bank, in collaboration with the government, is implementing a high-frequency phone survey of firms (HFPS-F). The HFPS-F interviews a sample of firms in Addis Ababa every three weeks for a total of eight survey rounds. This high-frequency follow-up allows for a better understanding of the effects of and responses to the COVID-19 pandemic on firm operations, hiring and firing, and expectations of future operations and labor demand in order to better tailor and implement interventions and policy responses and monitor their effects.

Coronavirus --- COVID-19 --- Economic Well-Being --- Gender --- Gender and Economics --- Inequality --- Labor Markets --- Layoffs --- Microenterprises --- Poverty Reduction --- Private Sector Development --- Small and Medium Size Enterprises --- Social Protections and Labor

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The Millennium Development Goal of halving the incidence of extreme poverty from its 1990 level will be achieved in 2015, and the international development community is now moving to a new goal of "ending extreme poverty." However, the data needed to monitor progress remain severely limited. During the 10 year period between 2002 and 2011, as many as 57 countries have zero or only one poverty estimate. This paper refers to such lack of poverty data as "data deprivation," because the poor are often socially marginalized and voiceless, and the collection of objective and quantitative data is crucial in locating them and formulating policy to help them exit extreme deprivation. This paper studies the extent of data deprivation and proposes targets for ending data deprivation by 2030-the year by when the international community aims to end extreme poverty. According to the analysis in this paper, this target is ambitious but possible, and achieving it is necessary to be able to declare the end of extreme poverty with confidence.

Data Deprivation --- E-Business --- Household Survey --- Poverty --- Poverty Monitoring & Analysis --- Rural Poverty Reduction --- Statistical & Mathematical Sciences --- Statistics

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The COVID-19 pandemic and its economic and social effects on households have created an urgent need for timely data to help monitor and mitigate the social and economic impacts of the crisis and protect the welfare of the least well-off in Ethiopian society. To monitor how the COVID-19 pandemic is affecting Ethiopia's economy and people and to inform interventions and policy responses, the World Bank designed and conducted its High-Frequency Phone Survey of Households (HFPS-HH).

Coronavirus --- Covid-19 --- Distance Learning --- Employment and Unemployment --- Food Security --- Household Income --- Living Standards --- Poverty Reduction --- Social Protections and Assistance --- Social Protections and Labor --- Unemployment