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Can Policies Affect Employment Intensity of Growth? A Cross-Country Analysis

Author

Listed:
  • Davide Furceri
  • Ernesto Crivelli
  • Joël Toujas-Bernate

Abstract

The aim of this paper is to provide new estimates of employment-output elasticities and assess the effect of structural and macroeocnomic policies on the employment-intensity of growth. Using an unbalanced panel of 167 countries over the period 1991 - 2009, the results suggest that structural policies aimed at increasing labor and product market flexibility and reducing government size have a significant and positive impact on employment elasticities. In addition, the results also suggest that in order to maximize the positive impact on the responsiveness of employment to economic activity, structural policies have to be complemented with macroeconomic policies aimed at increasing macroeconomic stability.

Suggested Citation

  • Davide Furceri & Ernesto Crivelli & Joël Toujas-Bernate, 2012. "Can Policies Affect Employment Intensity of Growth? A Cross-Country Analysis," IMF Working Papers 12/218, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:12/218
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    References listed on IDEAS

    as
    1. Davide Furceri, 2010. "Long-run growth and volatility: which source really matters?," Applied Economics, Taylor & Francis Journals, vol. 42(15), pages 1865-1874.
    2. Gilles Mourre, 2006. "Did the pattern of aggregate employment growth change in the euro area in the late 1990s?," Applied Economics, Taylor & Francis Journals, vol. 38(15), pages 1783-1807.
    3. Kaufman, Roger T., 1988. "An international comparison of Okun's laws," Journal of Comparative Economics, Elsevier, vol. 12(2), pages 182-203, June.
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    5. Andrea Bassanini & Romain Duval, 2009. "Unemployment, institutions, and reform complementarities: re-assessing the aggregate evidence for OECD countries," Oxford Review of Economic Policy, Oxford University Press, vol. 25(1), pages 40-59, Spring.
    6. Afonso, António & Furceri, Davide, 2010. "Government size, composition, volatility and economic growth," European Journal of Political Economy, Elsevier, vol. 26(4), pages 517-532, December.
    7. Andrea Bassanini & Romain Duval, 2006. "Employment Patterns in OECD Countries: Reassessing the Role of Policies and Institutions," OECD Social, Employment and Migration Working Papers 35, OECD Publishing.
    8. Marco Vivarelli, 2002. "Book review," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 11(6), pages 581-584.
    9. Roger Perman & Christophe Tavera, 2005. "A cross-country analysis of the Okun's Law coefficient convergence in Europe," Applied Economics, Taylor & Francis Journals, vol. 37(21), pages 2501-2513.
    10. Freeman, Donald G, 2001. "Panel Tests of Okun's Law for Ten Industrial Countries," Economic Inquiry, Western Economic Association International, vol. 39(4), pages 511-523, October.
    11. Ana L. Revenga & Samuel Bentolila, 1995. "What Affects the Employment Rate Intensity of Growth?," Working Papers 9517, Banco de España;Working Papers Homepage.
    12. Gabrisch, Hubert & Buscher, Herbert S., 2005. "The unemployment-growth relationship in transition countries," IWH Discussion Papers 5/2005, Halle Institute for Economic Research (IWH).
    13. Davide Furceri & Lorenzo E. Bernal-Verdugo & Dominique M. Guillaume, 2012. "Crises, Labor Market Policy, and Unemployment," IMF Working Papers 12/65, International Monetary Fund.
    14. Horst Feldmann, 2006. "Government Size and Unemployment: Evidence from Industrial Countries," Public Choice, Springer, vol. 127(3), pages 443-459, June.
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. La dérégulation du marché du travail est-elle une solution au chômage ?
      by ? in D'un champ l'autre on 2014-04-26 18:10:00

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    Cited by:

    1. Ferdinand Pavel & Yann Girard & Arno Hantzsche & Anselm Mattes & Julius Pahlke & Katherina Peter, 2014. "Wachstumsfaktor Telekommunikation: zum Beitrag der Telekommunikationsbranche zur wirtschaftlichen Entwicklung in Deutschland; Endbericht," DIW Berlin: Politikberatung kompakt, DIW Berlin, German Institute for Economic Research, volume 78, number pbk78.
    2. Louise Fox & Cleary Haines & Jorge Huerta Munoz & Alun H. Thomas, 2013. "Africa's Got Work to Do; Employment Prospects in the New Century," IMF Working Papers 13/201, International Monetary Fund.
    3. Martin Lábaj & Karol Morvay & Martin Hudcovský, 2015. "Labour Elasticity in V4 countries: Structural decomposition analysis," Department of Economic Policy Working Paper Series 009, Department of Economic Policy, Faculty of National Economy, University of Economics in Bratislava.
    4. repec:ilo:ilowps:484966 is not listed on IDEAS
    5. Aleksynska, Mariya., 2014. "Deregulating labour markets : how robust is the analysis of recent IMF working papers?," ILO Working Papers 994849663402676, International Labour Organization.
    6. Emiliano COLANTONIO & Gianluigi NICO, 2014. "CAN OKUN’s LAW EXPLAIN DECENT WORK DEFICIT FOR YOUNG PEOPLE IN EUROPE? A FOCUS ON THE ROMANIAN ECONOMY," Romanian Journal of Economics, Institute of National Economy, vol. 38(1(47)), pages 5-35, June.
    7. Tregenna, Fiona., 2015. "Sectoral dimensions of employment targeting," ILO Working Papers 994867013402676, International Labour Organization.
    8. 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.
    9. Richter, Kaspar & Witkowski, Bartosz, 2014. "Does growth generate jobs in Eastern Europe and Central Asia ?," Policy Research Working Paper Series 6759, The World Bank.
    10. International Monetary Fund, 2014. "Algeria; Selected Issues Paper," IMF Staff Country Reports 14/342, International Monetary Fund.
    11. Enrico D'Elia & Alessandra Righi, 2017. "Firm's level labour intensity in Italy after the Great Recession," Working Papers 1, Department of the Treasury, Ministry of the Economy and of Finance.
    12. Magda E. Kandil & Genevieve M Lindow & Mario Mansilla & Joel Chiedu Okwuokei & Jochen M. Schmittmann & Qiaoe Chen & Xin Li & Marika Santoro & Solomon Stavis, 2014. "Labor Market Issues in the Caribbean; Scope to Mobilize Employment Growth," IMF Working Papers 14/115, International Monetary Fund.
    13. International Monetary Fund, 2012. "Kuwait; Selected Issues and Statistical Appendix," IMF Staff Country Reports 12/151, International Monetary Fund.
    14. Abdelaaziz Aït Ali & Yassine Msadfa, 2017. "Manufacturing Employment Elasticity and Its Drivers in Developing and Emerging Countries : Focus on Sub-Saharan Africa," Research papers & Policy papers 1709, OCP Policy Center.
    15. repec:ilo:ilowps:486701 is not listed on IDEAS

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