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High Employment Generating Industries in Portugal. An Input-Output Approach

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  • João Carlos Lopes

Abstract

An increase in the unemployment rate is one of the most serious consequences of macroeconomic crises. In Portugal, the impact of the deep recession of 2009 has been particularly strong. In this paper, after quantifying this macroeconomic problem, an input-output approach is used in order to identify the high employment generating (or destructing) industries. This approach is particularly interesting because it considers not only the direct flows of job creation and destruction, but also the employment changes attributable to the indirect and induced effects of interindustry connections (the flows of intermediate inputs’ supply and demand). Using the so-called hypothetical extraction (or “shut-down of industry”) method and the employment and input-output data of the Portuguese economy, the key sectors in terms of multipliers, elasticities and the creation of jobs are identified. The empirical results of this paper can be useful in improving the policy responses to the crisis and implementing the most appropriate measures to stimulate the economy.

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File URL: http://pascal.iseg.utl.pt/~depeco/wp/wp242011.pdf
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Bibliographic Info

Paper provided by ISEG - School of Economics and Management, Department of Economics, University of Lisbon in its series Working Papers Department of Economics with number 2011/24.

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Date of creation: Oct 2011
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Handle: RePEc:ise:isegwp:wp242011

Contact details of provider:
Postal: Department of Economics, ISEG - School of Economics and Management, University of Lisbon, Rua do Quelhas 6, 1200-781 LISBON, PORTUGAL
Web page: https://aquila1.iseg.ulisboa.pt/aquila/departamentos/EC

Related research

Keywords: input-output analysis; hypothetical extraction; employment Classification-C67; D57;

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References

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  1. Abbas Valadkhani, 2003. "How Many Jobs Were Lost With the Collapse of Ansett?," School of Economics and Finance Discussion Papers and Working Papers Series 137, School of Economics and Finance, Queensland University of Technology.
  2. J. Ferreira do Amaral & João Dias & J. Carlos Lopes, 2008. "A New Kind of Production Multiplier for Assessing the Scale and Structure Effects of Demand Shocks in Input-Output Frameworks," Working Papers Department of Economics 2008/52, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
  3. Abbas Valadkhani, 2005. "Cross-country analysis of high employment-generating industries," Applied Economics Letters, Taylor & Francis Journals, vol. 12(14), pages 865-869.
  4. Groenewold, N & Hagger, A J & Madden, J R, 1993. "Measuring Industry Importance: An Australian Application," The Annals of Regional Science, Springer, vol. 27(2), pages 175-82.
  5. Abbas Valadkhani, 2002. "Identifying Australia’s High Employment Generating Industries," School of Economics and Finance Discussion Papers and Working Papers Series 119, School of Economics and Finance, Queensland University of Technology.
  6. João Ferreira do Amaral & João Carlos Lopes & João Dias, 2010. "External dependency, value added generation and structural change: an interindustry approach," Working Papers Department of Economics 2010/12, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
  7. Heimler, Alberto, 1991. "Linkages and Vertical Integration in the Chinese Economy," The Review of Economics and Statistics, MIT Press, vol. 73(2), pages 261-67, May.
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Cited by:
  1. João Carlos Lopes & João Ferreira do Amaral, 2013. "The Structure and Evolution of Production, Employment and Human Capital in Portugal: an Input-Output Approach," Working Papers Department of Economics 2013/24, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.

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