Sectoral Economic Growth and Employment in Mexico, 1996-2001

Aniel A. Altamirano Ogarrio (), Mario M. Carrillo Huerta () and Jose A. Ceron Vargas ()
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Aniel A. Altamirano Ogarrio: Universidad de las Americas-Puebla
Mario M. Carrillo Huerta: Universidad de las Americas-Puebla
Jose A. Ceron Vargas: Universidad de las Americas-Puebla/Instituto Politecnico Nacional

EconoQuantum, Revista de Economia y Finanzas, 2005, vol. 2, issue 1, 63-90

Abstract: This paper shows the results from a study of the impact of sectoral economic growth on unemployment in Mexico for the period 1996-2001, realized by applying a disaggregate approach on data from the National Employment Survey (Encuesta Nacional de Empleo). The paper, which draws from some previous work related to Okun´s Law, includes a discussion of the theoretical aspects of the sectoral contributions to growth, as well as of the relationship between production and employment and the working of labor markets, and it also describes the recent evolution of unemployment in Mexico. The core of the paper rests upon the analysis of panel data to estimate the open unemployment rate; it also includes the study of regional urban/rural growth and unemployment in different sectors for ten different Mexican regions. The results from the analysis at the regional level show that unemployment in Mexico has a statistically significant negative effect on sectoral economic growth. Also, evidence was found suggesting that promoting sectoral-regional (urban/rural) growth could be an effective way to reduce unemployment.

Keywords: Sectoral growth; unemployment; Okun’s Law; panel data. (search for similar items in EconPapers)
JEL-codes: E24 O41 (search for similar items in EconPapers)
Date: 2005
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