The Impact of Easing Firm Constraints on Small and Medium Enterprises Growth: Evidence from Uganda

Wage subsidy policies that allow firms to choose who to hire and how to spend the subsidy lead to firm expansion

From:
Foreign, Commonwealth & Development Office
Published
1 March 2018
Country:
Uganda
Document Type:
Research Paper
Theme:
Economic Growth
Authors:
Alfonsi, L, Bandiera, O, Bassi, V, Burgess, R, Rasul, I, Sulaiman, M, Vitali, A

Abstract

This study finds that wage subsidy policies that allow firms to choose who to hire and how to spend the subsidy lead to firm expansion and the creation of net employment. Instead, tying the provision of wage subsidies to hiring and sharing the monetary transfer with a specific worker leads firms to replace existing workers with the new hires.

This research was funded under the Private Enterprise Development in Low Income Countries (PEDL) Programme

Citation

Alfonsi, L., Bandiera, O., Bassi, V., Burgess, R., Rasul, I., Sulaiman, M. and Vitali, A. (2018) “The Impact of Easing Firm Constraints on Small and Medium Enterprises Growth: Evidence from Uganda

The Impact of Easing Firm Constraints on Small and Medium Enterprises Growth: Evidence from Uganda (PDF, 596KB)

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Published 1 March 2018
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