Growth and Employment in the Dominican Republic: Options for a Job-Rich Growth

Author/Editor:

Umidjon Abdullaev ; Marcello M. Estevão

Publication Date:

February 8, 2013

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 Dominican Republic has posted high rates of output and productivity growth, but labor market indicators have remained weak during the past 20 years. This paper documents these trends, showing that the rapid productivity growth originates in a few sectors, while the bulk of job creation is concentrated elsewhere. The speed of job creation has not been enough to raise employment rates, and lackluster real earnings along with still-rampant labor market informality suggest that most of the new jobs are of low quality. Low real wages and low labor force participation suggest the need of raising market wages above fallback incomes to attract individuals to the labor force. For that, measures to improve education and reduce product market distortions would be helpful.

Series:

Working Paper No. 2013/040

Subject:

Notes:

Full text also available in Spanish

English

Publication Date:

February 8, 2013

ISBN/ISSN:

9781475518573/1018-5941

Stock No:

WPIEA2013040

Pages:

25

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