Employment Determinants in an Input-Output Framework: Structural Decomposition Analysis and Production Technology

Athena Belegri-Roboli and Maria Markaki

Bulletin of Political Economy, 2010, vol. 4, issue 2, 145-156

Abstract: The aim of this paper is to examine the impact of structural determinants on employment changes in the Greek economy, over the period 2000-2008. In this context, we apply the Structural Decomposition Analysis (SDA) in an input–output analysis framework. The SDA is a technique which breaks down a variable of interest into the changes of all the relevant determinants. In this study, we apply SDA to express employment changes (employed persons) into changes of employment’s determinants. The selected determinants are: labour productivity, Leontief’s inverse matrix and final demand. The results of this study show that labour productivity and Leontief’s inverse matrix changes produce negative effects on labour changes. In contrast, final demand changes effects are positive. Finally, labour productivity and final demand are found to be the most crucial determinants for the formation of employment, while Leontief’s inversed matrix effects are not significant.

Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:awu:journl:v:4:y:2010:i:2:p:145-156

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