Growth and Jobs in Developing Economies: Trends and Cycles
IMF Working Papers, November 17, 2017
Source details
- Canonical URL
- Growth and Jobs in Developing Economies: Trends and Cycles
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Bibliographic details
- Authors: Zidong An, Tayeb Ghazi, Nathalie Gonzalez Prieto, Aomar Ibourk
- Published: November 17, 2017
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781484329627.001
Summary
- This paper investigates the relationship between economic growth and job creation in developing economies with a focus on low and lower middle-income countries along two dimensions: growth patterns and short-run correlations.
- Analysis on growth patterns shows that regime changes are quite common in both economic growth and employment growth, yet they are not synchronized with each other.
- Okun’s Law—the short-run relationship between output and labor market—holds in half of the countries in our sample and shows considerable cross-country heterogeneity.
Major findings — growth patterns
- Regime changes are quite common in both economic growth and employment growth.
- Regime changes in economic growth and employment growth are not synchronized with each other.
Major findings — short-run correlations and Okun’s Law
- Okun’s Law holds in half of the countries in the sample.
- There is considerable cross-country heterogeneity in the short-run relationship between output and the labor market (Okun coefficient/Okun’s Law).
Subject areas and keywords
- Subject: Employment, Job creation, Labor, Labor markets, Production, Production growth, Unemployment rate
- Keywords: coefficient, coefficient estimate, Economic Fluctuations, Employment, employment growth, employment structure, Global, Job creation, Labor markets, Okun coefficient, Okun’s Law, Production growth, Structural Breaks, total employment, Unemployment rate, WP
Content in this bundle
- Growth and Jobs in Developing Economies: Trends and Cycles, WP/17/257, November 2017