It has been argued that employment serves as the principal channel through which the link between economic growth and poverty can be established. As a result, it is important to closely examine wages and earnings as they help us in assessing how economic growth and increased productivity get transmitted to the poor. The central objective of the study is, therefore, to establish a quantitative relationship between growth, employment, poverty and policies in the Ethiopian context. The specific objectives of the study are to:
· examine the trends of output, employment and other social indicators in Ethiopia.
· decompose the impact of growth into employment, productivity and multiple effects.
· quantify the likely impacts of alternative public policies on employment and poverty.
· suggest some policy recommendations.