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1 – 10 of over 3000In this paper, the author assesses if the effect of structural policies, macroeconomic indicators and demographic factors on employment elasticities over the period 2000–2017 can…
Abstract
Purpose
In this paper, the author assesses if the effect of structural policies, macroeconomic indicators and demographic factors on employment elasticities over the period 2000–2017 can distinguish the former French colonies from the Anglophone ones.
Design/methodology/approach
Using a panel of 44 countries taken from Africa and Middle East Area, elasticities are estimated in the first stage by rolling regression. Then, both static and dynamic panel models are investigated.
Findings
Results suggest big difference between the former French colonies and Anglophone ones. For the French colonies, product and labor market flexibility are found to have significant and positive impact on elasticities, while for Anglophone ones, only foreign direct investment and government size are found to have significant and positive impact. Besides, all reforms and/or economic measures need to be complemented by macroeconomic policies aimed to increase economic stability.
Originality/value
The results presented in this study highlight some of the factors that appear to drive the relationship between employment and some structural policies, macroeconomic indicators and demographic factors for two groups of former colonies. The paper provides policy conclusions based on these results for the two groups. This analysis may indeed help to inform future policy discussions, yet much additional work is needed to identify macroeconomic “best practices” for encouraging employment in the post-2019 covid crisis period.
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The article clarifies the wage–employment relation in a developing country. Several years ago, many articles in the United States indicated that the relation between increasing…
Abstract
Purpose
The article clarifies the wage–employment relation in a developing country. Several years ago, many articles in the United States indicated that the relation between increasing wages and increasing unemployment is unclear. These articles from the United States are insufficient to be applicable to all countries, especially developing countries such as Colombia where institutions and the wage–employment relation differ from those in the United States.
Design/methodology/approach
A meta-analysis methodology was used as 28 estimates of long-run wage–employment elasticity in Colombia from 1998 to 2016 were analyzed.
Findings
This article provides insights into how real wages affect employment. Despite publication biases, results showed that a 1% increase in wages results in a 0.11% decline in employment in the long run.
Research limitations/implications
Due to the publication bias, it is not considered how variables such as sectors, estimation strategies (panel data, partial adjustment, cointegration and non-linear least squares, among others), formal/informal urban sectors, government services and transportation, and qualified and unskilled workers affect the true elasticity value.
Practical implications
This paper includes implications for public policy because the results are important to minimum wages policy in a developing country.
Originality/value
There are no studies regarding the wage–employment relation in a developing country. The empirical results obtained in this article are useful for regulators, policy makers and researchers to understand whether employment is affected by real wages.
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Suresh Chand Aggarwal and Bishwanath Goldar
This study aims to analyze the structure and trend in employment in the Indian economy between 1980-8081 and 2015-2016.
Abstract
Purpose
This study aims to analyze the structure and trend in employment in the Indian economy between 1980-8081 and 2015-2016.
Design/methodology/approach
Use of India KLEMS data set. Estimate growth rate of employment and discuss employment prospects using “Point” employment elasticity.
Findings
Whilst India’s GDP growth rate has been quite impressive since the reforms of 1991, the rate of employment growth, especially in the recent period of 2003-2015, has been quite slow (1 per cent) with low employment elasticity (0.1). The pattern of employment growth has also been imbalanced with slow rate of employment growth in manufacturing and rapid growth rate in the construction sector. India now also has low labour force participation rate and a large share of informal employment in the economy.
Research limitations/implications
The limitation is the lack of reliable data on employment for the recent period.
Practical implications
With overall low employment elasticity, India would have to explore sectors where more employment opportunities could be created.
Social implications
India has to create not only more jobs but also “good” jobs.
Originality/value
The India KLEMS data provide a time series for employment, which has been used in this paper to find “Point” elasticity instead of arc elasticity of employment and is an improvement over existing employment elasticity estimates.
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Examines the employment effects of minimum wage regulation on Greekmanufacturing for the period 1962‐87. The empirical analysis is carriedout in three steps. First, estimates the…
Abstract
Examines the employment effects of minimum wage regulation on Greek manufacturing for the period 1962‐87. The empirical analysis is carried out in three steps. First, estimates the effect of the minimum wage on the average wages of adult male and female industrial workers to derive estimates of wage elasticities of each type of labour with respect to the minimum wage. Second, estimates labour demand equations for the two types of labour to derive the employment elasticities with respect to the corresponding average wage. Finally, provides estimates on the employment effects of the minimum wage by combining the results derived in the first two stages. The results provide some indications that the minimum wage plays a more significant role in the employment of female than male workers in manufacturing, and suggest that minimum wages positively affect the average real wage of both types of workers examined.
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This study explores the impact of import competition on wages and employment at the industry level. We estimate reduced‐form, industry‐level wage and employment equations. We find…
Abstract
This study explores the impact of import competition on wages and employment at the industry level. We estimate reduced‐form, industry‐level wage and employment equations. We find that, in a majority of industries, a toughening of import competition tends to reduce employment and to have an adverse effect on workers’ wages, but the magnitude of this impact is relatively modest. Our results suggest that import price variations have had very little influence on the domestic labour market.
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Efstratios Loizou, Fotios Chatzitheodoridis, Anastasios Michailidis, Meropi Tsakiri and Giorgos Theodossiou
The purpose of this paper is to reveal the dynamics of the Greek energy sector. As energy sectors contribute substantially to a national economy and stimulate national output and…
Abstract
Purpose
The purpose of this paper is to reveal the dynamics of the Greek energy sector. As energy sectors contribute substantially to a national economy and stimulate national output and employment, it is important to identify their upward and downward linkages and interrelations with the other sectors of the economy.
Design/methodology/approach
To do this and capture such relations in the economy, a general equilibrium model is used. In specific, input–output (I–O) analysis is used and a model is specifically built for the Greek economy to examine in detail the energy sectors. Multiplier and linkage analysis is performed to assess their dynamics in terms of output, household income and employment.
Findings
Results indicate that the three energy sectors’ multipliers and elasticities, though are not ranking in the first places, are enough high indicating their strong linkages in the economy and their potentials to enhance the economy’s total output, employment and household income.
Research limitations/implications
Further disaggregation of the economy’s energy sectors is needed to make clearer the separation among renewable and non-renewable sector, to identify and compare the dynamics and contribution of each category in the economy. Additionally, an environmental I–O model would indicate consequences on the environment and not just pure economic benefits.
Practical implications
Through the analysis, it can be seen that energy sectors and secondary energy products have the ability to drive a country’s economic activity through exports and intersectoral linkages, even if it is not a crude petroleum producing economy. Thus, knowledge of the economic impacts of such sectors is a valuable information.
Originality/value
The current study provides significant information of an economy’s energy sectors regarding their ability to support economic activity and employment. A general equilibrium model is used, examining the whole economy, to assess direct and indirect interrelationships.
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High rates of youth unemployment, worldwide, have led governments to advocate a range of policies designed to increase job offers to young workers. For example, the Australian…
Abstract
High rates of youth unemployment, worldwide, have led governments to advocate a range of policies designed to increase job offers to young workers. For example, the Australian Government is currently introducing a system of “training wages” which will see effective youth wages set well below adult award wages for a designated training period. This policy is designed to simultaneously increase the human capital of young workers as well as help to overcome the initial barriers to entry into the labour market. However, youth‐specific wages have been criticized on the basis of age discrimination and on equity grounds. Also, some US data question the employment‐boosting potential of reduced minimum youth wages. In this paper recent international findings on the relationship between youth wages and employment are presented and compared with empirical tests of the relationship using labour market data for Australia as a whole as well as the State of Queensland. The results are used to examine the likely impact of the introduction of the training wage on the youth labour market in Australia and to provide further generalizations on the wider issue of employment and youth‐specific wages.
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Robert C.M. Beyer, Milagros Chocce and Martin Rama
The purpose of this paper is to present a new data set of comparable employment indicators for South Asian countries, constructed from more than 60 primary data sources from 2001…
Abstract
Purpose
The purpose of this paper is to present a new data set of comparable employment indicators for South Asian countries, constructed from more than 60 primary data sources from 2001 to 2017.
Design/methodology/approach
The main contribution of the paper is to curate the information provided by individual respondents to censuses and surveys, in a way that is consistent across countries and over time. The usefulness of the data set is illustrated by conducting a rigorous assessment of employment characteristics, of changes in employment over time and of the short- and long-run relationships between economic growth and employment growth in South Asia.
Findings
The exercise shows that agriculture still employs the majority of the working-age population across the region and, except in Sri Lanka, more than half of the employment is self-employment or unpaid family work. The paper also shows that employment rates are generally decreasing in South Asia, and that in some countries female employment rates are falling rapidly. Seasonal growth patterns are shown to affect the composition of employment, while non-seasonal changes in short-run growth affect the overall level of employment. The paper estimates that, in the long run, one percentage point growth of gross domestic product has led on average to a 0.34 per cent increase in employment.
Originality/value
This paper provides a new employment data set for South Asia, a rigorous assessment of employment trends and changes and an analysis for relationship between economic growth and employment (both quarterly and long-run).
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This paper analyses the link between educational qualification structure and information technology (IT) in the service production process. The analysis is based on 1996…
Abstract
This paper analyses the link between educational qualification structure and information technology (IT) in the service production process. The analysis is based on 1996 cross‐sectional data for approximately 1,000 West German firms. The empirical evidence indicates that IT capital and high‐skilled labor are complements in the production process: firms with higher IT investment output ratios employ a larger fraction of high‐skilled workers at the expense of unskilled workers. To a lesser extent, the positive IT effect carries through for workers with vocational degrees including masters and technicians. Furthermore, we find that firms’ expectations of the future size of their high‐skilled workforce are positively related to their initial IT investment output ratio. To account for censoring in the employment variables, the empirical analysis uses Powell’s Censored Least Absolute Deviations estimators as well as standard Tobit estimators.
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