This paper advances the hypothesis thatNigeria is going through a process of economic polarization. The notion of polarization is concerned with the disappearance or non‐consolidation of the middle class, which occurs when there is a tendency to concentrate in the tails, rather than the middle, of the income/consumption distribution. This paper uses newly available data and the relative distribution methodology (Handcock andMorris, 1998, 1999) to present new results on polarization. The findings confirm the sharp increase of polarization. Compared to 2003, the distribution of consumption has become more concentrated in upper and lower deciles in 2013, while the middle deciles have thinned. A between‐group analysis shows the emergence of a macro‐regional gap: while theSouth‐South andSouth‐West regions contribute mainly to polarization in the upper tail, households in theNorthEast andNorthWest zones—the conflict‐stricken areas—are more likely to fall in the lower national deciles.

This report sheds light on major labor market issues and challenges that Morocco faces. It is the first phase of the programmatic jobs program jointly undertaken with the government of Morocco. The report is a jobs diagnostic that analyzes microdata mainly from Labor Force Surveys and employs new analytical methods to identify the main trends in the labor market. The key challenges that emerge will provide the basis for a deeper analysis and policy formulation in the next phase of this program. “Morocco’s Jobs Landscape” identifies four priorities: accelerate structural transformation to create more and better jobs in higher-productivity sectors, encourage formalization and improve the quality of jobs, increase female labor force participation, and address youth inactivity and its long-term consequences. Morocco has made significant economic progress over the past 20 years, which has raised the living standards of its people. However, Morocco’s economic growth has not been labor-intensive enough to absorb its growing working-age population. It has had a low capacity to generate jobs, and the rate of job creation slowed after the 2008 financial crisis. Morocco is trying to overcome the “middle-income trap,” which has been preventing its convergence with more affluent middle-income countries. The government of Morocco has called for a new inclusive development model. The new model must address regional development imbalances, facilitate inclusion for youth and women, and continue to foster labor force skills upgrading. The COVID-19 pandemic and resultant safety measures have halted or slowed economic activity, which is worsening the labor market situation. The pandemic undoubtedly complicates prospects for jobs-led growth, and it will make the challenges highlighted in this report even more urgent and deserving of policy makers’ attention.

Ghana is an exceptional case in the Sub-Saharan Africa (SSA) landscape. Together with a handful of other countries, Ghana offers the opportunity to analyze the distributional changes in the past two decades, since four comparable household surveys are available. In addition, unlike many other countries in SSA, Ghana's rapid growth translated into fast poverty reduction. A closer look at the distributional changes that occurred in the same period, however, suggests less optimism. The present paper develops an innovative methodology to analyze the distributional changes that occurred and their drivers, with a high degree of accuracy and granularity. Looking at the results from 1991 to 2012, the paper documents how the distributional changes over time hollowed out the middle of the Ghanaian household consumption distribution and increased the concentration of households around the highest and lowest deciles; there was a clear surge in polarization indeed. When looking at the drivers of polarization, household characteristics, educational attainment, and access to basic infrastructure all tended to increase over time the size of the upper and lower tails of the consumption distribution and, as a consequence, the degree of polarization

The present paper, starting from evidence of low growth-to-poverty elasticity characterising Africa, purports to identify the distributional changes that limited the pro-poor impact of the last two decades’ growth. Distributional changes that went undetected by standard inequality measures were not showing a clear pattern of inequality on the continent. By applying a new decomposition technique based on a non-parametric method—the ‘relative distribution’—we found a clear distributional pattern affecting almost all analysed countries. Nineteen out twenty four countries experienced a significant increase in polarisation, particularly in the lower tail of the distribution, and this distributional change lowered the pro-poor impact of growth substantially. Without this unfavourable redistribution, poverty could have decreased in these countries by an additional five percentage points.