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The Employment Intensity of Growth: Evidence from Tunisia

Monia Ghazali and Rim Mouelhi ()
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Monia Ghazali and Rim Mouelhi: University of Tunis, University of Manouba

Journal of Economic Development, 2018, vol. 43, issue 3, 85-118

Abstract: The employment intensity of output growth or elasticity of employment with respect to output plays an important role in assessing the job creation ability of economic sectors. This research aims to focus on the Tunisian case in order to estimate the employment intensity of growth among Tunisian productive sectors and identify key sectors that are employment intensive. The data cover the period 1980-2012. Results suggest a significant decrease in aggregate employment elasticity over the period of study. At the sector level, we identify two categories of sectors. The first category involves low-productive sectors with high and increasing employment-output elasticities. The second category includes high-productive sectors with low and decreasing employment-output elasticities. The second stage of the analysis identifies the major determinants influencing total employment elasticity. The trade openness as well as selected macroeconomic policy variables contribute significantly to explain the elasticity evolution.

Keywords: Growth Employment Elasticity; Structural Change; Rolling Regressions; Labor Market (search for similar items in EconPapers)
JEL-codes: E24 J01 (search for similar items in EconPapers)
Date: 2018
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Handle: RePEc:jed:journl:v:43:y:2018:i:3:p:85-118