Employment-output elasticities determinants: case of cross-section from AMEE

Malika Neifar

MPRA Paper from University Library of Munich, Germany

Abstract: Employment to production intensity is used as indicator for employment. The aim of this paper is to provide new estimates of employment-output elasticities and assess the effect of structural and macroeocnomic policies and demographic indicators on the employment-intensity of growth. Having a sample of 44 countries taken from AMEE (Africa and Middel East Erea; 20 francophone et 24 anglophone countries) over the priod 2000-2017, we propose linear and non linear specifications to assess the role of considered variables. Linear models results in majority do not confirm previous empirical results except that of Trade openness saying it contributes to explain cross-country variations in employment elasticities which tend to be higher in more open economies for Francophone countries. While for Anglophone countries, elasticities are effected only by 15 to 24 years old participant in active population (Tx1524). With non linear specifications (Quadratic, Cubic, and/or Augmented Cubic), Structural Policy variables (Labor market policy, Lmp, and Product market policy, Pmp) have increasing effect on elasticities. Structural reforms have to be complemented by macroeconomic stability policies (less GDP volatility) to maximize the effect of structural policies on employment responsiveness. In addition, macroeconomic policies aimed at promoting Foreign direct investment (FDI) have significant and positive impact on employment elasticities.

Keywords: Employment to product elasticity; Linear model; Cubic model; Quadratic model; Cross section; Africa and Middel East Erea (AMEE). (search for similar items in EconPapers)
JEL-codes: E2 E24 J21 (search for similar items in EconPapers)
Date: 2020-03-05
New Economics Papers: this item is included in nep-int, nep-lma and nep-mac
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