Ease of Doing Business Reforms and Employment of Labor in Nigeria: Evidence from Quasi Experimental Approach

Articles in Press

Document Type : Original Article

Authors

1 Department of Economics, Faculty of Arts and Social Sciences, Gombe State University, Gombe, Nigeria

2 Department of Business Administration, Faculty of Arts and Social Sciences, Gombe State University, Gombe, Nigeria

Abstract

This study investigates the employment effects of business environment reforms using firm-level data from Nigeria. While regulatory reforms aimed at improving the ease of doing business are widely promoted as drivers of private-sector development, evidence on their labor market impact remains inconclusive in developing economies. Employing a quasi-experimental framework, we estimate treatment effects using Regression Adjustment, Inverse Probability Weighted Regression Adjustment, and Nearest-Neighbor Matching estimators. The results indicate that firms benefiting from reform-related improvements exhibit significantly higher labor employment compared to non-treated firms, with findings robust across specifications. These effects are particularly pronounced among formal-sector firms, suggesting that institutional quality mediates the employment response to reforms. The study contributes to the political economy of development by providing causal evidence on how regulatory reforms translate into real-sector outcomes in an emerging economy. The findings have important implications for policymakers seeking to promote job creation through business environment reforms.

Keywords

References

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International Journal of New Political Economy

Articles in Press, Accepted Manuscript
Available Online from 27 February 2026

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  • Receive Date: 05 December 2025
  • Revise Date: 25 February 2026
  • Accept Date: 27 February 2026
  • First Publish Date: 27 February 2026
  • Publish Date: 27 February 2026

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