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Sectorial Economic Growth and Employment in Mexico, 1996-2001

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  • Aniel A. Altamirano Ogarrio
  • Mario M. Carrillo Huerta
  • José A. Cerón Vargas
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    Abstract

    This paper shows the results from a study of the impact of sectorial economic growth on unemployment in Mexico for 1996-2001, by applying a disaggregate approach on data from the National Employment Survey (Encuesta Nacional de Empleo). The paper includes a discussion of the theoretical aspects of the sectorial contributions to growth (emphasizing the case of agriculture), as well as of the relationship between production and employment and the working of labor markets, but 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 through the analysis of unemployment in different sectors for ten different mexican regions. The results from the estimations at the regional level show that unemployment in Mexico has a statistically significant negative effect on sectorial economic growth. Also, evidence was found suggesting that promoting sectorial-regional (urban/rural) growth is an effective way to reduce unemployment. The paper, which is divided into five sections and draws upon some previous work on Okun’s law, also shows the impact that growth among economic activities within sectors has upon unemployment for the period.

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    Bibliographic Info

    Paper provided by DEGIT, Dynamics, Economic Growth, and International Trade in its series DEGIT Conference Papers with number c010_033.

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    Length: 27 pages
    Date of creation: Jun 2005
    Date of revision:
    Handle: RePEc:deg:conpap:c010_033

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    Keywords: Sectorial Growth; Unemployment; Okun’s Law; Panel Data; National Employment Survey;

    This paper has been announced in the following NEP Reports:

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    1. Hashida, Emiko & Perloff, Jeffrey M, 1996. "Duration of agricultural employment," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt5rr3v96v, Department of Agricultural & Resource Economics, UC Berkeley.
    2. Datt, Gaurav & Ravallion, Martin, 1998. "Why Have Some Indian States Done Better Than Others at Reducing Rural Poverty?," Economica, London School of Economics and Political Science, vol. 65(257), pages 17-38, February.
    3. Hayami, Yujiro & Ruttan, Vernon W., 1969. "Factor Prices And Technical Change In Agricultural Development: The United States And Japan, 1880-1960," Staff Papers 14172, University of Minnesota, Department of Applied Economics.
    4. Hayami, Yujiro & Ruttan, Vernon W, 1970. "Agricultural Productivity Differences Among Countries," American Economic Review, American Economic Association, vol. 60(5), pages 895-911, December.
    5. Ravallion, Martin & Datt, Gaurav, 1996. "How Important to India's Poor Is the Sectoral Composition of Economic Growth?," World Bank Economic Review, World Bank Group, vol. 10(1), pages 1-25, January.
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