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

33 Pages Posted: 1 Nov 2012

See all articles by Ernesto Crivelli

Ernesto Crivelli

International Monetary Fund (IMF)

Davide Furceri

International Monetary Fund (IMF)

Joel Toujas-Bernate

affiliation not provided to SSRN

Date Written: August 2012

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.

Keywords: Employment, Unemployment, Employment Elasticities, Structural Policies, Reforms, Labor Markets, Production Growth, Analysis Of Collective Decision-making

JEL Classification: E29, J60, E32

Suggested Citation

Crivelli, Ernesto and Furceri, Davide and Toujas-Bernate, Joel, Can Policies Affect Employment Intensity of Growth? A Cross-Country Analysis (August 2012). IMF Working Paper No. 12/218. Available at SSRN: https://ssrn.com/abstract=2169762

Ernesto Crivelli

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Davide Furceri

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Joel Toujas-Bernate

affiliation not provided to SSRN

No Address Available

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