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High Employment Generating Industries in Portugal. An Input-Output Approach

Listed author(s):
  • João Carlos Lopes

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.

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Paper provided by ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa in its series Working Papers Department of Economics with number 2011/24.

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Date of creation: Oct 2011
Handle: RePEc:ise:isegwp:wp242011
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Department of Economics, ISEG - Lisbon School of Economics and Management, Universidade de Lisboa, Rua do Quelhas 6, 1200-781 LISBON, PORTUGAL

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  1. Abbas Valadkhani, 2002. "Identifying Australia’s High Employment Generating Industries," School of Economics and Finance Discussion Papers and Working Papers Series 119, School of Economics and Finance, Queensland University of Technology.
  2. Abbas Valadkhani, 2003. "How Many Jobs Were Lost With the Collapse of Ansett?," School of Economics and Finance Discussion Papers and Working Papers Series 137, School of Economics and Finance, Queensland University of Technology.
  3. Abbas Valadkhani, 2005. "Cross-country analysis of high employment-generating industries," Applied Economics Letters, Taylor & Francis Journals, vol. 12(14), pages 865-869.
  4. 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.
  5. 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.
  6. 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.
  7. 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.
  8. 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.
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