This paper exploits a unique panel of Ugandan manufacturing and service‐sector firms (2008–2021) to investigate how firm-level
economic growth translates into labour market outcomes. Combining administrative tax records, labour force surveys, and a
purpose-built management practices module, we estimate a simultaneous growth-employment-wage system that identifies both
direct and equilibrium effects. We find that a 10 % increase in real value-added at the firm level raises employment by 4.7 % and
average wages by 2.9 %, with larger elasticities among exporters and firms in agglomerated regions. Growth episodes are skill-
biased, increasing the share of non-production workers by 5.5 percentage points and compressing within-firm wage dispersion.
Dynamic decompositions show that two-thirds of net job creation stems from incumbents rather than entrants, while labour
reallocation from shrinking to expanding firms accounts for half of aggregate productivity growth. Difference-in-differences exploiting
variation in the staggered rollout of an investment tax credit corroborates these patterns, indicating that faster-growing firms crowd in
labour rather than poach it. Counterfactual simulations suggest that raising the productivity of the bottom quartile of firms to the

median would lift economy-wide employment by 6 % and reduce under-employment by 2.4 percentage points. The results highlight
the central role of firm-level growth dynamics in shaping inclusive labour market outcomes in low-income economies.