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Growth and Employment in the Dominican Republic; Options for a Job-Rich Growth

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  • Umidjon Abdullaev
  • Marcello Estevao

Abstract

The Dominican Republic has posted high rates of output and productivity growth, but labor market indicators have remained weak during the past 20 years. This paper documents these trends, showing that the rapid productivity growth originates in a few sectors, while the bulk of job creation is concentrated elsewhere. The speed of job creation has not been enough to raise employment rates, and lackluster real earnings along with still-rampant labor market informality suggest that most of the new jobs are of low quality. Low real wages and low labor force participation suggest the need of raising market wages above fallback incomes to attract individuals to the labor force. For that, measures to improve education and reduce product market distortions would be helpful.

Suggested Citation

  • Umidjon Abdullaev & Marcello Estevao, 2013. "Growth and Employment in the Dominican Republic; Options for a Job-Rich Growth," IMF Working Papers 13/40, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:13/40
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    References listed on IDEAS

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    6. Norman Loayza & Pablo Fajnzylber & César Calderón, 2005. "Economic Growth in Latin America and the Caribbean : Stylized Facts, Explanations, and Forecasts," World Bank Publications, The World Bank, number 7315.
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    13. David Card & Pablo Ibarrarán & Ferdinando Regalia & David Rosas-Shady & Yuri Soares, 2011. "The Labor Market Impacts of Youth Training in the Dominican Republic," Journal of Labor Economics, University of Chicago Press, vol. 29(2), pages 267-300.
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    Citations

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    Cited by:

    1. Jaime Aristy-Escuder & Maynor Cabrera & Blanca Moreno-Dodson & Miguel Sánchez-Martín, 2016. "Fiscal Policy and Redistribution in the Dominican Republic," Commitment to Equity (CEQ) Working Paper Series 47, Tulane University, Department of Economics.
    2. World Bank, 2015. "How to Sustain Export Dynamism by Reducing Duality in the Dominican Republic
      [Cómo mantener el dinamismo exportador en la República Dominicana : un diagnóstico del Banco Mundial sobre competitivida
      ," World Bank Other Operational Studies 21685, The World Bank.
    3. Stacey, Brian, 2016. "The Effects of Non-Existent Property Ownership Rights Within the Electricity Production Sector on Labor Force Participation in the Dominican Republic," MPRA Paper 80251, University Library of Munich, Germany.
    4. Ramírez, Nerys F., 2016. "Determinantes del Desempleo en la República Dominicana: Dinámica Temporal y Microsimulaciones
      [Determinants of Unemployment in the Dominican Republic: Temporal Dynamics and Microsimulations]
      ," MPRA Paper 76998, University Library of Munich, Germany.
    5. Ramirez, Francisco A., 2013. "Oferta de Trabajo en la República Dominicana: Tendencias y Determinantes
      [Labor Supply in the Dominican Republic: Trends and Determinants]
      ," MPRA Paper 51913, University Library of Munich, Germany.

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