IDEAS home Printed from https://ideas.repec.org/p/ilo/ilowps/994865223402676.html
   My bibliography  Save this paper

Is there a trade-off between employment and productivity?

Author

Listed:
  • Junankar, P.N. (Raja).

Abstract

The aim of this paper is to analyse the possible trade-off between employment and productivity using panel data on world economies, developed and developing. We begin with the importance of productivity growth for developing countries, followed by a brief discussion of the concept of productivity and how it is measured. We discuss the concept of "decent work" and provide an index to measure decent work, and study its changes over time. First we provide some simple descriptive statistics and then carry out an econometric investigation using alternative estimation techniques. Our broad results suggest that there is a trade-off between employment and productivity.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Junankar, P.N. (Raja)., 2014. "Is there a trade-off between employment and productivity?," ILO Working Papers 994865223402676, International Labour Organization.
    • Handle: RePEc:ilo:ilowps:994865223402676
    as

    Download full text from publisher

    File URL: http://www.ilo.org/public/libdoc/ilo/2014/114B09_180_engl.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Enrico Spolaore & Romain Wacziarg, 2013. "How Deep Are the Roots of Economic Development?," Journal of Economic Literature, American Economic Association, vol. 51(2), pages 325-369, June.
    2. Ute Pieper, 2000. "Deindustrialisation and the social and economic sustainability nexus in developing countries: Cross-country evidence on productivity and employment," Journal of Development Studies, Taylor & Francis Journals, vol. 36(4), pages 66-99.
    3. Johnson, Simon & Larson, William & Papageorgiou, Chris & Subramanian, Arvind, 2013. "Is newer better? Penn World Table Revisions and their impact on growth estimates," Journal of Monetary Economics, Elsevier, vol. 60(2), pages 255-274.
    4. Margaret S. McMillan & Dani Rodrik, 2011. "Globalization, Structural Change and Productivity Growth," NBER Working Papers 17143, National Bureau of Economic Research, Inc.
    5. StevenN. Durlauf & Andros Kourtellos & ChihMing Tan, 2008. "Are Any Growth Theories Robust?," Economic Journal, Royal Economic Society, vol. 118(527), pages 329-346, March.
    6. Stephen Bond, 2002. "Dynamic panel data models: a guide to microdata methods and practice," CeMMAP working papers CWP09/02, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
    7. Quah, Danny, 1994. "Exploiting cross-section variation for unit root inference in dynamic data," Economics Letters, Elsevier, vol. 44(1-2), pages 9-19.
    8. Natalia Ponomareva & Hajime Katayama, 2010. "Does the version of the Penn World Tables matter? An analysis of the relationship between growth and volatility," Canadian Journal of Economics, Canadian Economics Association, vol. 43(1), pages 152-179, February.
    9. Baumol, William J, 1986. "Productivity Growth, Convergence, and Welfare: What the Long-run Data Show," American Economic Review, American Economic Association, vol. 76(5), pages 1072-1085, December.
    10. Quah, Danny T., 1996. "Empirics for economic growth and convergence," European Economic Review, Elsevier, vol. 40(6), pages 1353-1375, June.
    11. Banerjee, Abhijit V. & Duflo, Esther, 2005. "Growth Theory through the Lens of Development Economics," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 7, pages 473-552, Elsevier.
    12. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
    13. Andrew E. Clark, 1998. "Measures of Job Satisfaction: What Makes a Good Job? Evidence from OECD Countries," OECD Labour Market and Social Policy Occasional Papers 34, OECD Publishing.
    14. Layard, Richard, 2004. "Good jobs and bad jobs," LSE Research Online Documents on Economics 28757, London School of Economics and Political Science, LSE Library.
    15. Quah, Danny, 1993. "Empirical cross-section dynamics in economic growth," European Economic Review, Elsevier, vol. 37(2-3), pages 426-434, April.
    16. Stephen R. Bond, 2002. "Dynamic panel data models: a guide to micro data methods and practice," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 1(2), pages 141-162, August.
    17. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    18. Marcel P. Timmer & Gaaitzen J. de Vries, 2009. "Structural change and growth accelerations in Asia and Latin America: a new sectoral data set," Cliometrica, Journal of Historical Economics and Econometric History, Association Française de Cliométrie (AFC), vol. 3(2), pages 165-190, June.
    19. Hervé Boulhol & Laure Turner, 2009. "Employment-Productivity Trade-off and Labour Composition," OECD Economics Department Working Papers 698, OECD Publishing.
    20. Acemoglu, Daron, 2001. "Good Jobs versus Bad Jobs," Journal of Labor Economics, University of Chicago Press, vol. 19(1), pages 1-21, January.
    21. Ian Dew-Becker & Robert J. Gordon, 2012. "The Role of Labor-Market Changes in the Slowdown of European Productivity," Review of Economics and Institutions, Università di Perugia, vol. 3(2).
    22. Steven N. Durlauf & Paul A. Johnson & Jonathan R. W. Temple, 2009. "The Methods of Growth Econometrics," Palgrave Macmillan Books, in: Terence C. Mills & Kerry Patterson (ed.), Palgrave Handbook of Econometrics, chapter 24, pages 1119-1179, Palgrave Macmillan.
    23. Dowrick, Steve & Nguyen, Duc-Tho, 1989. "OECD Comparative Economic Growth 1950-85: Catch-Up and Convergence," American Economic Review, American Economic Association, vol. 79(5), pages 1010-1030, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Saima Nawaz & Saba Anwar & Nasir Iqbal, 2021. "The Spatial Effects of Road Infrastructure on Employment in Pakistan: Quantifying the Role of Complementary Factors," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 60(3), pages 309-330.
    2. Thomas Habanabakize & Daniel Francois Meyer & Judit Oláh, 2019. "The Impact of Productivity, Investment and Real Wages on Employment Absorption Rate in South Africa," Social Sciences, MDPI, vol. 8(12), pages 1-15, December.
    3. Elise S. Brezis & Gilad Brand, 2018. "Productivity Gap between Sectors and Double Duality in Labor Markets," Open Economies Review, Springer, vol. 29(4), pages 725-749, September.
    4. Timo Mitze & Teemu Makkonen, 2020. "When interaction matters: the contingent effects of spatial knowledge spillovers and internal R&I on firm productivity," The Journal of Technology Transfer, Springer, vol. 45(4), pages 1088-1120, August.
    5. Samuel Ajayi-Obe, 2020. "Key Determinants of Job Creation: A Comparative analysis between OECD Countries and Emerging Economies," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 4, pages 619-647, December.
    6. Michel Dumont & Chantal Kegels, 2016. "Working Paper 06-16 - Young Firms and Industry Dynamics in Belgium," Working Papers 1606, Federal Planning Bureau, Belgium.
    7. Junankar, Pramod N. (Raja), 2019. "Youth Labour Markets in Developing and Developed Countries: The Role of the Sectoral Composition of Production," IZA Discussion Papers 12256, Institute of Labor Economics (IZA).
    8. Luis A. Gil-Alana & Marinko Skare, 2018. "Testing the great decoupling: a long memory approach," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 45(4), pages 801-820, November.
    9. Ritzen, Jo & Zimmermann, Klaus F., 2018. "Towards a European Full Employment Policy," GLO Discussion Paper Series 191, Global Labor Organization (GLO).
    10. Richard Kofi Asravor & Frank Gyimah Sackey, 2023. "Impact of Technology on Macro-Level Employment and the Workforce: What are the Implications for Job Creation and Job Destruction in Ghana?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 168(1), pages 207-225, August.
    11. Daňová Monika & Vozárová Ivana Kravčáková, 2021. "Does the instability of economic development affect the elasticity of the labour market?," Review of Economic Perspectives, Sciendo, vol. 21(3), pages 291-308, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Isis Gaddis & Stephan Klasen, 2014. "Economic development, structural change, and women’s labor force participation:," Journal of Population Economics, Springer;European Society for Population Economics, vol. 27(3), pages 639-681, July.
    2. Paul Johnson & Chris Papageorgiou, 2020. "What Remains of Cross-Country Convergence?," Journal of Economic Literature, American Economic Association, vol. 58(1), pages 129-175, March.
    3. Silvia Fedeli & Vitantonio Mariella & Marco Onofri, 2018. "Determinants of Joblessness During the Economic Crisis: Impact of Criminality in the Italian Labour Market," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 139(2), pages 559-588, September.
    4. Markus Eberhardt & Francis Teal, 2010. "Aggregation versus Heterogeneity in Cross-Country Growth Empirics," CSAE Working Paper Series 2010-32, Centre for the Study of African Economies, University of Oxford.
    5. Lange, Simon & Klasen, Stephan, 2017. "How the New International Goal for Child Mortality is Unfair to Sub-Saharan Africa (Again)," World Development, Elsevier, vol. 90(C), pages 128-146.
    6. Borsato, Andrea & Lorentz, André, 2023. "The Kaldor–Verdoorn law at the age of robots and AI," Research Policy, Elsevier, vol. 52(10).
    7. You, Kefei & Bianco, Silvia Dal & Amankwah-Amoah, Joseph, 2020. "Closing Technological Gaps to Alleviate Poverty: Evidence from 17 Sub-Saharan African Countries," Technological Forecasting and Social Change, Elsevier, vol. 157(C).
    8. Grundmann, Rainer & Gries, Thomas, 2015. "Crucial for Modern Sector Development? The Role of Exports and Institutions in Developing Countries," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112962, Verein für Socialpolitik / German Economic Association.
    9. Stefano Magrini, 2007. "Analysing Convergence through the Distribution Dynamics Approach: Why and how?," Working Papers 2007_13, Department of Economics, University of Venice "Ca' Foscari".
    10. Jesús Rodríguez‐López & Diego Martínez‐López & Diego Romero‐Ávila, 2009. "Persistence of inequalities across the Spanish regions," Papers in Regional Science, Wiley Blackwell, vol. 88(4), pages 841-862, November.
    11. Magrini, Stefano, 2004. "Regional (di)convergence," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 62, pages 2741-2796, Elsevier.
    12. Lin, Boqiang & Zhu, Junpeng, 2021. "Impact of China's new-type urbanization on energy intensity: A city-level analysis," Energy Economics, Elsevier, vol. 99(C).
    13. Huy Quang Doan, 2019. "Trade, Institutional Quality and Income: Empirical Evidence for Sub-Saharan Africa," Economies, MDPI, vol. 7(2), pages 1-23, May.
    14. Carlos Carreira & Luís Lopes, 2016. "Collecting new pieces to the regional knowledge spillovers puzzle: high-tech versus low-tech industries," GEMF Working Papers 2016-06, GEMF, Faculty of Economics, University of Coimbra.
    15. Kampelmann, Stephan & Rycx, François, 2012. "The impact of educational mismatch on firm productivity: Evidence from linked panel data," Economics of Education Review, Elsevier, vol. 31(6), pages 918-931.
    16. Bertrand, Olivier & Zuniga, Pluvia, 2006. "R&D and M&A: Are cross-border M&A different? An investigation on OECD countries," International Journal of Industrial Organization, Elsevier, vol. 24(2), pages 401-423, March.
    17. Fernando Mayoral & Carlos Garcimartín, 2013. "The impact of population on the reduction of steady-state disparities across Spanish regions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 50(1), pages 49-69, February.
    18. Falavigna, Greta & Ippoliti, Roberto, 2023. "SMEs’ behavior under financial constraints: An empirical investigation on the legal environment and the substitution effect with tax arrears," The North American Journal of Economics and Finance, Elsevier, vol. 66(C).
    19. Guerino Ardizzi & Massimiliano Cologgi, 2022. "Business models and pricing strategies in the market for ATM withdrawals," Temi di discussione (Economic working papers) 23, Bank of Italy, Economic Research and International Relations Area.
    20. Martin Andersson & Hans Lööf, 2009. "Learning‐by‐Exporting Revisited: The Role of Intensity and Persistence," Scandinavian Journal of Economics, Wiley Blackwell, vol. 111(4), pages 893-916, December.

    More about this item

    Keywords

    decent work.; productivity.; economic growth; economic development; employment policy; travail décent; productivité; croissance économique; développement économique; politique de l'emploi; trabajo decente; productividad; crecimiento económico; desarrollo económico; política de empleo;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ilo:ilowps:994865223402676. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Vesa Sivunen (email available below). General contact details of provider: https://edirc.repec.org/data/ilounch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.