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Employment Efficiency and Production Risk in the Tunisian Manufacturing Industries

Author

Listed:
  • Almas Heshmati

    (Korea University)

  • Ilham Haouas

Abstract

This paper specifies a flexible model of labor demand in the manufacturing sector. The model is further extended to incorporate a risk function part which allows identifying the determinants of both level and variations in the employment. The risk function is particularly important when designing public policies that are geared at reducing the variance of employment or those policies that seek to increase employment in manufacturing. Since the variance of the function is both industry- and time-specific, it allows for the identification of industries that are from the perspective of vulnerable employment and design of policies targeting specific segment of the industry. In addition the paper looks at the time variant efficiency of the manufacturing industry in the choice of the level of employment that is technically necessary to produce a given level of output to satisfy the market demand. In applying this model to Tunisian manufacturing sector we add another dimension to the development of the literature on the estimation of a labor demand relationship.

Suggested Citation

  • Almas Heshmati & Ilham Haouas, 2011. "Employment Efficiency and Production Risk in the Tunisian Manufacturing Industries," Working Papers 602, Economic Research Forum, revised 07 Jan 2011.
    • Handle: RePEc:erg:wpaper:602
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    References listed on IDEAS

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    5. Almas Heshmati & Mkhululi Ncube, 2004. "An Econometric Model Of Employment In Zimbabwe¡¯S Manufacturing Industries," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 29(2), pages 107-130, December.
    6. 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.
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    Cited by:

    1. Ilham Haouas & Almas Heshmati, 2015. "The Impact of Arab Spring on Hiring and Separation Rates in the Tunisian Labor Market," Working Papers 921, Economic Research Forum, revised Jun 2015.
    2. Almas Heshmati & Ilham Haouas & Kazi Sohag & Muhammad Shahbaz, 2017. "Hiring and Separation Rates Before and after the Arab Spring in the Tunisian Labour Market," South African Journal of Economics, Economic Society of South Africa, vol. 85(2), pages 259-278, June.

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