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

ByDavide Furceri, Ernesto Crivelli, Joël Toujas-Bernate

August 1, 2012

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.

Subject: Commodity markets, Employment, Financial markets, Labor, Labor market policy, Labor markets, Macrostructural analysis, Structural policies

Keywords: Australia and New Zealand, Commodity markets, East Africa, employment, employment elasticities, employment elasticity, employment intensity, employment-GDP elasticity, employment-output elasticity, Labor market policy, Labor markets, Middle East, North Africa, product market flexibility, product market policy, reforms, structural policies, unemployment, WP

Pages:
32
Volume:
2012
DOI:
https://doi.org/10.5089/9781475505689.001
Issue:
218
Series:
Working Paper No. 2012/218
Stock No:
WPIEA2012218
ISBN:
9781475505689
ISSN:
1018-5941

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