IDEAS home Printed from https://ideas.repec.org/a/sav/journl/v71y2023i1p3-22.html
   My bibliography  Save this article

Age- and Gender-specific Output-employment Relationship across Economic Sectors

Author

Listed:
  • Mindaugas Butkus

    (Vilnius university Šiauliai academy, Institute of Regional Development)

  • Laura Dargenyte-Kacilevièiene

    (Vilnius university Šiauliai academy, Institute of Regional Development)

  • Kristina Matuzevièiute

    (Vilnius university Šiauliai academy, Institute of Regional Development)

  • Janina Šeputiene

    (Vilnius university Šiauliai academy, Institute of Regional Development)

  • Dovile Rupliene

    (Vilnius university Šiauliai academy, Institute of Regional Development)

Abstract

This paper supplements a strand of research on sectoral employment responsiveness to changes in sectoral value-added. The methodology is based on the employment version of the first-differenced Okun’s equation, which is further developed to (i) complement limited empirical evidence on gender- and age-specific employment elasticity; (ii) analyse differences across economic sectors; and (iii) examine the non-linear impact of output growth on employment. Empirical estimates are based on EU28 data from 2008 to 2020 for four main economic sectors and their subsectors according to the NACE classification. Results show that the services significantly differ from other sectors – the positive growth of value-added increases the sector’s employment in all labour force groups, except the youth employment, and the output decrease is not followed by a decline in employment. In all other sectors, we observe the jobless growth phenomenon.

Suggested Citation

  • Mindaugas Butkus & Laura Dargenyte-Kacilevièiene & Kristina Matuzevièiute & Janina Šeputiene & Dovile Rupliene, 2023. "Age- and Gender-specific Output-employment Relationship across Economic Sectors," Journal of Economics / Ekonomicky casopis, Institute of Economic Research, Slovak Academy of Sciences, vol. 71(1), pages 3-22, January.
    • Handle: RePEc:sav:journl:v:71:y:2023:i:1:p:3-22
    as

    Download full text from publisher

    File URL: https://www.sav.sk/journals/uploads/0316120301%2023%20Butkus%20+%20SR.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. L. Rachel Ngai & Barbara Petrongolo, 2017. "Gender Gaps and the Rise of the Service Economy," American Economic Journal: Macroeconomics, American Economic Association, vol. 9(4), pages 1-44, October.
    2. Verdugo, Gregory & Allègre, Guillaume, 2020. "Labour force participation and job polarization: Evidence from Europe during the Great Recession," Labour Economics, Elsevier, vol. 66(C).
    3. Guisinger, Amy Y., 2020. "Gender differences in the volatility of work hours and labor demand," Journal of Macroeconomics, Elsevier, vol. 66(C).
    4. Evans David K. & Akmal Maryam & Jakiela Pamela, 2021. "Gender gaps in education: The long view," IZA Journal of Development and Migration, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 12(1), pages 1-27, January.
    5. Izaskun Barba & Belen Iraizoz, 2020. "Effect of the Great Crisis on Sectoral Female Employment in Europe: A Structural Decomposition Analysis," Economies, MDPI, vol. 8(3), pages 1-24, August.
    6. Petrongolo, Barbara & Ronchi, Maddalena, 2020. "Gender gaps and the structure of local labor markets," Labour Economics, Elsevier, vol. 64(C).
    7. Arias-Vazquez, Francisco Javier & Lee, Jean Nahrae & Newhouse, David, 2012. "The Role of Sectoral Growth Patterns in Labor Market Development," IZA Discussion Papers 6926, Institute of Labor Economics (IZA).
    8. Barbara Sawtelle, 2007. "Analyzing the Link Between Real GDP and Employment: An Industry Sector Approach," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 42(4), pages 46-54, October.
    9. K. Burggraeve & G. de Walque & H. Zimmer, 2015. "The relationship between economic growth and employment," Economic Review, National Bank of Belgium, issue i, pages 32-52, June.
    10. Antoni, 2015. "The dynamic relationship between money supply and economic growth," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 7(2), pages 78-92, April.
    11. Marcel Novák & Ľubomír Darmo, 2019. "Okun´s Law over the Business Cycle: Does it Change in the EU Countries after the Financial Crisis?," Prague Economic Papers, Prague University of Economics and Business, vol. 2019(2), pages 235-254.
    12. Mr. JaeBin Ahn & Zidong An & Mr. John C Bluedorn & Gabriele Ciminelli & Zsoka Koczan & Mr. Davide Malacrino & Daniela Muhaj & Patricia Neidlinger, 2019. "Work In Progress: Improving Youth Labor Market Outcomes in Emerging Market and Developing Economies," IMF Staff Discussion Notes 2019/002, International Monetary Fund.
    13. PERUGINI, Cristiano, 2009. "Employment Intensity Of Growth In Italy. A Note Using Regional Data," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 9(1).
    14. Monia Ghazali and Rim Mouelhi, 2018. "The Employment Intensity of Growth: Evidence from Tunisia," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 43(3), pages 85-118, September.
    15. M. Upender, 2011. "Differential Output Elasticity Of Employment During Post-Economic Reform Period In The Indian Economy," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 56(02), pages 189-202.
    16. Davide Furceri & Ernesto Crivelli & Mr. Joël Toujas-Bernate, 2012. "Can Policies Affect Employment Intensity of Growth? A Cross-Country Analysis," IMF Working Papers 2012/218, International Monetary Fund.
    17. Jong-seok Oh, 2018. "Changes in cyclical patterns of the USA labor market: from the perspective of nonlinear Okun’s law," International Review of Applied Economics, Taylor & Francis Journals, vol. 32(2), pages 237-258, March.
    18. Falguni Pattanaik & Narayan Chandra Nayak, 2014. "Macroeconomic Determinants of Employment Intensity of Growth in India," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 8(2), pages 137-154, May.
    19. JaeBin Ahn & Zidong An & John C Bluedorn & Gabriele Ciminelli & Zsoka Koczan & Davide Malacrino & Daniela Muhaj & Patricia Neidlinger, 2019. "Work In Progress; Improving Youth Labor Market Outcomes in Emerging Market and Developing Economies," IMF Staff Discussion Notes Staff Discussion Note 19/, International Monetary Fund.
    20. Myeong Jun Kim & Sung Y. Park, 2019. "Do gender and age impact the time‐varying Okun's law? Evidence from South Korea," Pacific Economic Review, Wiley Blackwell, vol. 24(5), pages 672-685, December.
    21. Jochen Hartwig, 2014. "Testing Okun’s law with Swiss industry data," Applied Economics, Taylor & Francis Journals, vol. 46(29), pages 3581-3590, October.
    22. Cortes, Patricia & Pan, Jessica, 2017. "Occupation and Gender," IZA Discussion Papers 10672, Institute of Labor Economics (IZA).
    23. Richter, Kaspar & Witkowski, Bartosz, 2014. "Does growth generate jobs in Eastern Europe and Central Asia ?," Policy Research Working Paper Series 6759, The World Bank.
    24. repec:ilo:ilowps:343576 is not listed on IDEAS
    25. Pekkarinen, Tuomas, 2012. "Gender Differences in Education," IZA Discussion Papers 6390, Institute of Labor Economics (IZA).
    Full references (including those not matched with items on IDEAS)

    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. Mindaugas Butkus & Janina Seputiene, 2019. "The Output Gap and Youth Unemployment: An Analysis Based on Okun’s Law," Economies, MDPI, vol. 7(4), pages 1-17, November.
    2. Mindaugas Butkus & Kristina Matuzeviciute & Dovile Rupliene & Janina Seputiene, 2020. "Does Unemployment Responsiveness to Output Change Depend on Age, Gender, Education, and the Phase of the Business Cycle?," Economies, MDPI, vol. 8(4), pages 1-29, November.
    3. Beata Bal-Domańska, 2022. "The impact of macroeconomic and structural factors on the unemployment of young women and men," Economic Change and Restructuring, Springer, vol. 55(2), pages 1141-1172, May.
    4. Mindaugas BUTKUS & Laura DARGENYTE-KACILEVICIENE & Kristina MATUZEVICIUTE & Dovile RUPLIENE & Janina SEPUTIENE, 2024. "Are there more than three regimes in the output-unemployment relationship? A panel quantile regression estimates of Okun's gap model in EU countries," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 15, pages 201-218, June.
    5. Selda Gorkey & Asli Tasbasi, 2023. "Employment Intensity of Economic Growth in Southern Europe: Evidence from Multidimensional Panel Data," Croatian Economic Survey, The Institute of Economics, Zagreb, vol. 25(1), pages 5-32, June.
    6. Bluedorn, John & Hansen, Niels-Jakob & Noureldin, Diaa & Shibata, Ippei & Tavares, Marina M., 2023. "Transitioning to a greener labor market: Cross-country evidence from microdata," Energy Economics, Elsevier, vol. 126(C).
    7. EL HAMADI Youssef & ABDOUNI Abdeljabbar & BOUAOUZ Karima, 2017. "The Sectoral Employment Intensity Of Growth In Morocco: A Pooled Mean Group Approach," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 17(2), pages 87-98.
    8. Mr. Jose L. Torres, 2020. "Youth Unemployment in Uruguay," IMF Working Papers 2020/281, International Monetary Fund.
    9. Costanza Giannantoni & Andres Rodriguez-Pose, 2024. "Regional government institutions and the capacity for women to reconcile career and motherhood," Papers in Evolutionary Economic Geography (PEEG) 2435, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Oct 2024.
    10. Mr. Antonio David & Frederic Lambert & Mr. Frederik G Toscani, 2019. "More Work to Do? Taking Stock of Latin American Labor Markets," IMF Working Papers 2019/055, International Monetary Fund.
    11. Laura Dargenyte-Kacileviciene & Mindaugas Butkus & Kristina Matuzeviciute, 2022. "Gender-, Age- and Educational Attainment Level-Specific Output–Employment Relationship and Its Dependence on Foreign Direct Investment," Economies, MDPI, vol. 10(11), pages 1-25, October.
    12. Bram Timmermans & Joanna Tyrowicz & Lucas van der Velde, 2023. "(Gender) Tone at the top: the effects of gender board diversity on gender wage inequality in Europe," GRAPE Working Papers 89, GRAPE Group for Research in Applied Economics.
    13. Aksoy, Cevat Giray & Özcan, Berkay & Philipp, Julia, 2021. "Robots and the gender pay gap in Europe," European Economic Review, Elsevier, vol. 134(C).
    14. Mungase, Sachin & Nikam, Supriya & Kothe, Satyanarayan, 2024. "Structural Change and Labour Productivity in BRICS," MPRA Paper 121607, University Library of Munich, Germany.
    15. Benjamin Lerch, 2021. "From Blue to Steel-Collar Jobs: The Decline in Employment Gaps?," IdEP Economic Papers 2102, USI Università della Svizzera italiana.
    16. Afşin Şahin & Aysit Tansel & M. Hakan Berument, 2015. "Output–Employment Relationship Across Sectors: A Long- Versus Short-Run Perspective," Bulletin of Economic Research, Wiley Blackwell, vol. 67(3), pages 265-288, July.
    17. Monia Ghazali and Rim Mouelhi, 2018. "The Employment Intensity of Growth: Evidence from Tunisia," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 43(3), pages 85-118, September.
    18. Guisinger, Amy Y., 2020. "Gender differences in the volatility of work hours and labor demand," Journal of Macroeconomics, Elsevier, vol. 66(C).
    19. Ssebulime, Kurayish & Okumu, Ibrahim Mike & Bbaale, Edward, 2023. "The Changing Employment Landscape in Uganda," African Journal of Economic Review, African Journal of Economic Review, vol. 11(4), September.
    20. Tregenna, Fiona., 2015. "Sectoral dimensions of employment targeting," ILO Working Papers 994867013402676, International Labour Organization.

    More about this item

    Keywords

    employment intensity; economic sectors; economic growth; youth employment; gender;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

    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:sav:journl:v:71:y:2023:i:1:p:3-22. 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: Peter Renac (email available below). General contact details of provider: https://edirc.repec.org/data/eusavsk.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.