Occupational Choice and Energy Access - Electricity For More And Better Jobs

Electricity plays a crucial role in health, safety, and participation in the modern world. The channels by which is contributes to economic development are still not fully understood. Especially in rural communities in low-income countries with high shares of subsistence farming, electricity access is often seen as game changer towards more diversified jobs and higher earnings. This paper analyses the effect of electricity access on occupational choices in six Sub-Saharan African countries, using a unique dataset from household surveys combined with electricity modules. It finds that, while the effect of electricity access on the decision for non-farm economic activities is positive, other factors such as educational levels, age, access to loans or land ownership also affect the decision. Overall, wages and earning in non-farm activities are higher in electrified regions and in some sectors, electrification also helps to close the gender pay-gap. However, wages and incomes in rural areas stay below the respective payments in urban areas, so that electricity access and non-farm activities will not keep workers from migrating and seeking better jobs in cities