Can Policies Affect Employment Intensity of Growth? A Cross-Country Analysis

Author/Editor:

Davide Furceri ; Ernesto Crivelli ; Joël Toujas-Bernate

Publication Date:

August 1, 2012

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

The aim of this paper is to provide new estimates of employment-output elasticities and assess the effect of structural and macroeocnomic policies on the employment-intensity of growth. Using an unbalanced panel of 167 countries over the period 1991 - 2009, the results suggest that structural policies aimed at increasing labor and product market flexibility and reducing government size have a significant and positive impact on employment elasticities. In addition, the results also suggest that in order to maximize the positive impact on the responsiveness of employment to economic activity, structural policies have to be complemented with macroeconomic policies aimed at increasing macroeconomic stability.

Series:

Working Paper No. 12/218

Subject:

English

Publication Date:

August 1, 2012

ISBN/ISSN:

9781475505689/1018-5941

Stock No:

WPIEA2012218

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

32

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