Labour-Use Efficiency in Tunisian Manufacturing Industries
AbstractThis paper investigates the process of adjustment in employment. A dynamic model is applied to a panel of six Tunisian manufacturing industries observed over the period 1971–96. The adjustment process is industry and time specific. The adjustment parameter is specified in terms of factors affecting the speed of adjustment. Industries are assumed to adjust their labour inputs towards a desired level of labour-use. A translog labour requirement function is specified in terms of observable variables and is used to model the desired level of labour-use. The labour requirement is specified to be function of wages, output, quasi-fixed capital stock and technology. The empirical results show that in the long run, employment demand responds greatest to value-added, followed by capital stock changes, and least by wages. The speed of adjustment in employment and the degree of labour-use efficiency show large variations among the sectors and over time.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 687.
Length: 25 pages
Date of creation: Jan 2003
Date of revision:
Publication status: published in: Review of Middle East Economics and Finance, 2003, 1 (3), 195-214
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Other versions of this item:
- Haouas Ilham & Yagoubi Mahmoud & Heshmati Almas, 2003. "Labor-use Efficiency in Tunisian Manufacturing Industiries," Review of Middle East Economics and Finance, De Gruyter, vol. 1(3), pages 1-20, December.
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Longitudinal Data; Spatial Time Series
- E24 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
- L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
This paper has been announced in the following NEP Reports:
- NEP-AFR-2003-02-10 (Africa)
- NEP-ALL-2003-02-10 (All new papers)
- NEP-LAB-2003-02-10 (Labour Economics)
- NEP-PKE-2003-02-10 (Post Keynesian Economics)
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