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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.

Suggested Citation

  • João Carlos Lopes, 2011. "High Employment Generating Industries in Portugal. An Input-Output Approach," Working Papers Department of Economics 2011/24, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    • Handle: RePEc:ise:isegwp:wp242011
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    File URL: https://depeco.iseg.ulisboa.pt/wp/wp242011.pdf
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    References listed on IDEAS

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    1. Meller, Patricio & Marfan, Manuel, 1981. "Small and Large Industry: Employment Generation, Linkages, and Key Sectors," Economic Development and Cultural Change, University of Chicago Press, vol. 29(2), pages 263-274, January.
    2. Abbas Valadkhani, 2005. "Cross-country analysis of high employment-generating industries," Applied Economics Letters, Taylor & Francis Journals, vol. 12(14), pages 865-869.
    3. 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 - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    4. João Ferreira do Amaral & João Carlos Lopes & João Dias, 2011. "External dependency, value added generation and structural change: an inter-industry approach," Notas Económicas, Faculty of Economics, University of Coimbra, issue 33, pages 06-19, June.
    5. Heimler, Alberto, 1991. "Linkages and Vertical Integration in the Chinese Economy," The Review of Economics and Statistics, MIT Press, vol. 73(2), pages 261-267, May.
    6. Groenewold, N & Hagger, A J & Madden, J R, 1993. "Measuring Industry Importance: An Australian Application," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 27(2), pages 175-182.
    7. João Ferreira do Amaral & João Dias & João Carlos Lopes, 2007. "Complexity as Interdependence in Input–Output Systems," Environment and Planning A, , vol. 39(7), pages 1770-1782, July.
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    Citations

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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," Notas Económicas, Faculty of Economics, University of Coimbra, issue 38, pages 9-28, December.
    2. LOPES, Joao Carlos & SANTOS, Ana, 2016. "Vertical Specialization, Global Value Chains And International Trade: The Rubber And Plastics Industry In Portugal And Comparison With Northern And Southern Eu Countries," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 16(2), pages 15-28.
    3. João Ferreira do Amaral & João Carlos Lopes, 2015. "The Trade-off Unemployment Rate/External Deficit: Assessing the Economic Adjustment Program of the Troika (European Commission, ECB and IMF) for Portugal using an Input-Output Approach," Working Papers Department of Economics 2015/04, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    4. Theodore Mariolis & Despoina Kesperi, 2022. "Demand multipliers and technical performance of a Southern Eurozone economy in hard times: Kalman–Leontief–Sraffa evidence from the Greek economy, 2010–2014," Evolutionary and Institutional Economics Review, Springer, vol. 19(1), pages 47-75, April.

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    More about this item

    Keywords

    input-output analysis; hypothetical extraction; employment Classification-C67; D57;
    All these keywords.

    JEL classification:

    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis

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