Trade shocks and labour market resilience in Sub-Saharan Africa: Does the franc zone response differently?

The objective of this paper is to evaluate the impact of commodity terms of trade (CTOT) shocks on the labour market resilience of Sub-Saharan Africa (SSA) countries, comparing the franc zone countries on one hand, from the non-franc zone countries on the other hand. The results from the PVAR estimation indicate a positive impact of commodity terms of trade shocks on labour market resilience in SSA countries, a result that was replicated in both the franc zone and the non-franc zone countries. When robustness was checked through the PSTR, this positive relationship was established to be non-linear. The policy implications of the study invite the policy makers to diversify their economies to limit their heavy reliance of their economies on commodities.