Employment Impact Assessments: Analysis of the employment effects of infrastructure investment in Rwanda using multiplier analysis of construction subsectors

Employment Impact Assessments (EmpIA) are used to improve our understanding of how policies and investments impact on the quality and quantity of employment. One of such approaches is to use social accounting matrices (SAM) and conduct employment multiplier analysis. The aim of this short analysis of the Rwandan construction sector is to show how the employment impacts of public expenditure on different types of infrastructure differ using a social accounting matrix (SAM) based approach. The analysis uses the SAM of Rwanda for the year of 2011 and breaks down construction sector into five major sub-sectors: equipment-based feeder roads, labour-based feeder roads, national roads, government buildings, and rest of construction. Subsequently, based on the disaggregated new SAM, employment multiplier analysis of each sub-sector is conducted to show the differential direct, indirect and induced employment effects.