Convergence heterogeneity at the local level in sub‐Saharan Africa

Abstract

This paper tests for convergence in labour productivity at the local level in 10 sub‐Saharan countries, disaggregated into 1136 administrative entities. This work combines nighttime lights data and a unique set of population censuses to produce local measures of growth, employment and sectoral shares. We find evidence of unconditional convergence across sectors in the range of 2%. However, convergence is heterogeneous and conditional on both manufacturing and services employment shares. Convergence is also associated with proximity to the main city, moderate population density, low land suitability and relatively moderate temperature. Finally, the within effect dominates the between effect.