Can Policies Affect Employment Intensity of Growth? A Cross-Country Analysis
IMF Working Papers, August 1, 2012
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- Can Policies Affect Employment Intensity of Growth? A Cross-Country Analysis
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Bibliographic details
- Authors: Davide Furceri, Ernesto Crivelli, Joël Toujas-Bernate
- Published: August 1, 2012
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781475505689.001
Aim and methodology
- Aim: Provide new estimates of employment-output elasticities and assess the effect of structural and macroeconomic policies on the employment-intensity of growth.
- Sample: An unbalanced panel of 167 countries over the period 1991 - 2009.
- Paper series: IMF Working Papers.
Key findings
- Structural policies that increase labor and product market flexibility and reduce government size have a significant and positive impact on employment elasticities.
- To maximize the positive impact on the responsiveness of employment to economic activity, structural policies must be complemented with macroeconomic policies aimed at increasing macroeconomic stability.
Policy implications and recommendations
- Implement structural reforms that:
- Increase labor market flexibility.
- Increase product market flexibility.
- Reduce government size.
- Complement structural reforms with macroeconomic policies that enhance macroeconomic stability to amplify the positive effects on employment responsiveness.