This study examines the impact of electrification on employment diversification across
the agriculture, service, and manufacturing sectors, with a particular focus on sub-Saharan
African Countries (SSA). Motivated by the persistently low electrification rates in many
SSA countries, I investigate whether electrification drives shifts in employment patterns
and whether its effects are amplified in countries with lower baseline electrification. Using
OLS, with a panel data for 66 countries from 2000 to 2019, I find that one percentage-
point increase in a country’s electrification rate reduces employment in agriculture by
0.33 percentage points, while employment in other sectors increases. Subgroup analysis
of SSA and non-SSA countries reveals no significant divergence, except for manufactur-
ing in SSA, where electrification appears to have a negative effect—though this result
is inconclusive due to the potential omitted variable bias. These findings suggest that
increasing electrification rates plays a crucial role in creating jobs and transitioning sub-
Saharan African economies away from subsistence agriculture toward more diversified and
productive economic activities.
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