Identifying the Determinants of Employment Elasticity of Economic Growth

2018 ◽  
pp. 21-34
Author(s):  
Choi Chang Kon
Keyword(s):  
Economic Growth ◽  
Employment Elasticity

Labor Demand and the Elasticity of Job Opportunity: Evidence from Indonesia

2018 ◽  
Vol 3 (3) ◽  
pp. 59-66
Author(s):  
Jamaliah Jamaliah ◽  
Rosyadi Rosyadi
Keyword(s):  
Economic Growth ◽  
Labor Demand ◽  
Secondary Data ◽  
Jel Classification ◽  
Labor Policy ◽  
Employment Policy ◽  
Labor Flexibility ◽  
Rate Of Absorption ◽  
Job Opportunity ◽  
Employment Elasticity

Objective - Labor is one of the most important factors in production activities. Increased human effort in the production process will increase output, productivity and promote economic growth. This research aims to analyze the condition and potential of labor demand in Pontianak City, analyze job opportunities in Pontianak City and formulate a strategy of labor policy in Pontianak City. Methodology/Technique - The method used is descriptive with quantitative analysis which a qualitative interpretation. The data used is secondary data and related documents for data enrichment. Findings - The results show that: labor demand is showing an increasing trend year by year, increasing employment absorption from 233,788 in 2010 to 244,236 in 2014. The rate of absorption growth occurs primarily in the agriculture, building and transportation industries. Employment elasticity in Pontianak City is relatively low at only 0.02% which means the growth of labor absorption is smaller than the increase of economic growth. Novelty - This research shows that employment policy strategies in Pontianak City need to increase the role of Training Center (BLK), the enrichment of nutrition improvement and sustainability, encourage investment, increase competitiveness through increasing labor productivity and increase labor flexibility to the rules among other things. Type of Paper: Empirical. Keywords: Employment Demand; Employment Elasticity; Employment Policy Strategy. JEL Classification: J20, J21, J29.

scholarly journals The Nexus Among Economic Growth, Inflation and Unemployment in Bhutan

2019 ◽  
Vol 20 (1) ◽  
pp. 94-105
Author(s):  
Ugyen Tenzin
Keyword(s):  
Economic Growth ◽  
Unemployment Rate ◽  
Positive Association ◽  
Economic Output ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
Employment Elasticity ◽  
The Impact

In order to understand the dynamics of unemployment in Bhutan at a macro-level, this study has explored the association among economic growth, inflation and unemployment from 1998 to 2016. The autoregressive distributed lag (ARDL) model was applied to estimate the impact of economic growth and inflation on unemployment. The results of this empirical analysis suggest that economic growth had no impact on the reduction of unemployment rate in Bhutan both in the short and in the long run. In fact, as the economic growth increased, so did the unemployment rate. However, inflation had a negative association with unemployment rate in the short run and a positive association in the long run. In other words, an increase in the employment rate led to an increase in the inflation in the short run. Likewise, if inflation is not monitored or controlled, the uncertainty of inflation can lead to lower investment and lower economic growth, thereby causing unemployment to rise in the long run. This study, therefore, recommends policymakers to take into account the employment elasticity with respect to economic output and focus on sectors, which have more absorptive capacity in engaging the young labour market entrants. JEL: B22, C22, E24, E31

scholarly journals Examining The Employment Intensity Of Economic Growth Of The PIIGS

2014 ◽  
Vol 13 (3) ◽  
pp. 593
Author(s):  
William Seyfried
Keyword(s):  
Economic Growth ◽  
Sovereign Debt ◽  
The Other ◽  
Unemployment Rates ◽  
Temporary Contracts ◽  
Highly Sensitive ◽  
Employment Elasticity ◽  
High Employment ◽  
Very High ◽  
Double Digit

At the beginning of the second decade of the 21st century, several countries in the periphery of Europe began suffering from sovereign debt crises, resulting from and contributing to economic weakness. As of late 2013, each country was struggling with double-digit unemployment rates with rates in Greece and Spain near 27%. Though economic weakness was responsible for falling employment, the linkage between economic growth and employment, known as the employment intensity of economic growth (also called employment elasticity), may differ between nations. Estimation of models developed reveal different dynamics in the respective countries. Regardless of the model employed, the results revealed a very high employment intensity of economic growth in Spain relative to the other nations, indicating that employment was highly sensitive to changes in economic growth. As such, an equivalent decline in GDP had a much larger impact on employment in Spain than the other PIIGS. There is evidence that the structure of the labor market may play some role in explaining different employment elasticities for the countries in question. In particular, the degree of unionization appeared to be negatively correlated with employment intensity (economic growth had a smaller impact on employment in nations that have a larger percentage of unions) while the portion of workers on temporary contracts was positively correlated with employment intensity; countries with a larger percentage of workers on temporary contracts, such as Spain, had a higher employment intensity as employment responded more to changes in economic growth.

scholarly journals Manufacturing Output Growth and Employment in Nigeria

2021 ◽  
Vol 10 (2) ◽  
pp. 111-119
Author(s):  
Adetunji Adeniyi
Keyword(s):  
Economic Growth ◽  
Manufacturing Sector ◽  
Job Creation ◽  
Value Added ◽  
Output Growth ◽  
Vector Error Correction ◽  
Vector Error ◽  
Gross Value Added ◽  
Temporal Relationships ◽  
Employment Elasticity

The Manufacturing sector of the Nigerian economy can perform better in job creation, particularly during the period of economic expansion, which did not happen in the last period of economic growth between 1981 and 2014. Consequently, it is important to understand the real relationship between growth and job creation in the sector during the period.  Therefore, this study investigated the employment intensity of gross value added growth in the sector during the period of growth, using Vector Error Correction Model (VECM) with a view to providing useful statistics to facilitate policies for the development of sectoral employment strategy during the next cycle of economic growth. Previous studies have either used descriptive statistics or less robust econometric models applied to aggregate data of shorter series and did not explore the inter-sectoral relationship effect. The estimated employment elasticity of gross value added in the sector was not significant at 95 per cent confidence level, and can, therefore, not be relied upon for pin-point policy. However, the inter-sectoral and inter-temporal relationships provided significant estimates, indicating that such relationships should be taken into account in designing and developing sectoral employment strategy for the manufacturing sector. There is future scope for the extension of research to cover periods of recession, as well, for example, post COVID-19.

scholarly journals Is Growth Immiserizing in Nigeria?

2017 ◽  
Vol 21 (1) ◽  
Author(s):  
Musibau Adetunji Babatunde ◽  
T. Ademola Oyejidee
Keyword(s):  
Economic Growth ◽  
Institutional Factors ◽  
Simple Point ◽  
Significant Growth ◽  
Resource Misallocation ◽  
The Past ◽  
The Poor ◽  
Employment Elasticity ◽  
Household Incomes

Nigeria has experienced quite significant growth over the past one decade, but the incidence of poverty has also increased suggesting that the growth is immiserizing. The immiserizing nature of the growth was supported by the estimates from the growth elasticity of poverty, the employment elasticity of growth and the quality of the growth spells. The determinants of immiserizing growth cut across economic, social, political and institutional factors that include dysfunctional behaviour, structure of the economy, rising inequality and resource misallocation. However, this does not imply that, at the margin, economic growth is not beneficial to the poor. The simple point is that there are many other factors other than economic growth that help explain the weak or missing linkages between macro-economic growth and household incomes. Domestic policies are necessary to reduce the various constraints inherent in the economy that makes growth immiserizing.

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