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Labor-use Efficiency in Tunisian Manufacturing Industiries

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Author Info
Ilham Haouas (Centre d'Etudes du Developpement)
Mahmoud Yagoubi (CRIFES-MATISSE)
Almas Heshmati (Techno-Economics and Policy Program, College of Engineering, Seoul National University)

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Abstract

This paper investigates the process of adjustment in employment. A dynamic model is applied to a panel of six Tunisian manufacturing industries observed over a period of 25 years, from 1971 to 1996. Industries are assumed to adjust their labor inputs toward a desired level. A labor requirement function is specified in terms of observable variables used to model the desired level of labor. The adjustment process is both industry-specific, as well as time-specific, and is expressed in terms of factors affecting the speed of adjustment. The empirical results show that, in the long run, employment demands respond greatest to output, followed by changes in capital stock, and least by wages. Over time, the speed of adjustment in employment and the degree of labor-use efficiency show large variations among the industries.

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Publisher Info
Article provided by Berkeley Electronic Press in its journal Review of Middle East Economics and Finance.

Volume (Year): 1 (2007)
Issue (Month): 3 ()
Pages: 1
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Handle: RePEc:bep:rmeecf:1:2007:3:1

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Related research
Keywords: dynamics employment labor-use efficiency panel data Tunisia speed of adjustment technical change

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Blackwell Publishing, vol. 58(2), pages 277-97, April. [Downloadable!] (restricted)
  2. Kumbhakar, Subal C. & Heshmati, Almas & Hjalmarsson, Lennart, 2000. "How Fast Do Banks Adjust? A Dynamic Model of Labor-Use with an Application to Swedish Banks," Working Paper Series in Economics and Finance 411, Stockholm School of Economics, revised Nov 2001.
  3. Heshmati, Almas & Ncube, Mkhululi, 1998. "A Flexible Adjustment Model of Employment with Application to Zimbabwe's Manufacturing Industries," Working Paper Series in Economics and Finance 278, Stockholm School of Economics, revised 15 Aug 2003. [Downloadable!]
  4. Baltagi, Badi H. & Griffin, James M., 1997. "Pooled estimators vs. their heterogeneous counterparts in the context of dynamic demand for gasoline," Journal of Econometrics, Elsevier, vol. 77(2), pages 303-327, April. [Downloadable!] (restricted)
  5. Kumbhakar, Subal C & Hjalmarsson, Lennart, 1995. "Labour-Use Efficiency in Swedish Social Insurance Offices," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 10(1), pages 33-47, Jan.-Marc. [Downloadable!] (restricted)
  6. Kumbhakar, Subal C. & Hjalmarsson, Lennart, 1998. "Relative performance of public and private ownership under yardstick competition: electricity retail distribution," European Economic Review, Elsevier, vol. 42(1), pages 97-122, January. [Downloadable!] (restricted)
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  1. Jaan Masso & Almas Heshmati, 2003. "The Optimality And Overuse Of Labour In Estonian Manufacturing Enterprises," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 20, Faculty of Economics and Business Administration, University of Tartu (Estonia). [Downloadable!]
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