Share Of Total Employment Research Articles

Left-behind places in central and eastern Europe—labour productivity aspect

Abstract In the 21st century, there have already been a series of economic downturns, particularly the Subprime Crisis 2007–2009 and the Covid-19 pandemic in 2020. All those events triggered changes in productivity, economic performance and structure. The main objective of this study is to identify the regions left behind in the Central and Eastern European (CEE) countries and to analyse the structural and productivity changes taking place within them. In our analysis, we aim to verify the research hypothesis that all left-behind regions in CEE have similar economic structures with a high share of agriculture. The research period covers the years from 2010 until 2020 using data from the Eurostat database. In the first phase of our analysis, we analysed employment, Gross Value Added (GVA) and productivity data for 11 CEE countries. Then, we analysed the Nomenclature of Territorial Units for Statistics at level 3 (NUTS3) regions, and Poland, which is a NUTS2 region. Left-behind regions are defined as those with low productivity and low growth rates. We provide a detailed analysis of the best and worst performing regions in terms of productivity for each country using productivity data and shift-share decomposition of productivity growth rate. Left-behind regions for each CEE country have been identified, and these are BG333, BG342, CZ080, EE004, HR023, HU332, LT027, LV005, PL72, RO216, RO312, SI032, SI035, SI038 and SK032. In our analysis, our hypothesis analysing the relationship between agriculture share in total employment and the productivity level of the region was not confirmed.

Shock me like a Hurricane: how Hurricane Katrina changed Louisiana's formal and informal institutions

Abstract Institutions matter for postdisaster recovery. Conversely, natural disasters can also alter a society's institutions. Using the synthetic control method, this study examines the effects that Hurricane Katrina (2005) had on the formal and informal institutions in Louisiana. As measures of formal institutions, we employ two economic freedom scores corresponding to government employment (GE) (as a share of total employment at the state-level) and property tax (PT). These measures serve as proxies for the level of governmental interference into the economy and the protection of private property rights respectively. To assess the impact on informal institutions, we use state-level social capital data. We find that Hurricane Katrina had lasting impacts on Louisiana's formal institutions. In the post-Katrina period, we find that actual Louisiana had persistently higher economic freedom scores for both GE and PT than the synthetic Louisiana that did not experience the hurricane. These findings imply that the hurricane led to a reduction in both PTs and GE, which indicates a decrease in the relative size of the public sector as a share of the state's economy. On the other hand, we find no impact on our chosen measure of informal institution.

Employment growth and innovation in the economy Poland

RESEARCH OBJECTIVEThe paper aims to investigate whether product and technological innovations in the manufacturing sector determined its share in total employment in 1995-2018 and, at the same time, how they shaped the processes of change in the real structure of the Polish economy.
 THE RESEARCH PROBLEM AND METHODS: It was hypothesised that the low level of innovation in the manufacturing sector is a key determinant of the decline in its share in total employment, and the dichotomy of the deindustrialisation process in the Polish economy over the period 1995-2018.
 THE PROCESS OF ARGUMENTATION: In order to realise the objective, and to verify the hypothesis posed, a statistical analysis of the process of changes in the structure of the Polish economy for the years 1995-2018 in the production category as well as in the employment category was carried out.
 RESEARCH RESULTS: The analysis of changes in the structure of Poland's economy showed that the strongest growth in the total economy was in the production demand of the industrial sector. The increase in GDP per capita was most determined by the volume of manufacturing production (industrialisation process). In contrast, there was a large decline in employment in industry (deindustrialisation process) and no increase in employment in the total economy.
 CONCLUSIONS, INNOVATIONS, AND RECOMMENDATIONS:The research has shown the existence of a dualistic deindustrialisation process, the cause of which is the lack of innovation in the industrial sector. This results in jobless economic growth creating a very high level of unemployment, as well as an excess of labour force in agriculture. Hence the need for research into the impact and level of innovation in the structure of the industrial sector itself on its competitiveness. Then, on the basis of these, an appropriate state economic policy aimed at reindustrialisation based on product and technological innovation.

Determinants of High-tech Exports: New Evidence from OECD Countries

High export capacity is a key element for sustained long-term economic growth. To achieve this goal, the technological sophistication of exports plays a key role. To enhance exports with a high level of technological sophistication, it is critical to target key drivers of high-tech exports. Hence, this article studies the determinants of international trade flows of manufactures according to their technological content in the case of OECD countries. Given a panel of 35 countries and 15 years (2004 to 2018), panel data estimation techniques are used in the analysis. In addition, two alternative measures have been considered to measure the importance of high-technology content manufacturing exports: High-tech manufacturing exports and high-tech manufacturing exports as a share of total employment. Results obtained show strong evidence of the relevance of variables such as gross fixed capital formation on total employment, the land area per capita, the percentage of university graduates relative to the population group, R&D expenditure in terms of GDP, the stock of inward foreign direct investment in terms of GDP, imports of high-tech manufactures as a share of GDP, the quality of national governance and regulation, the country population and EU membership as determinants of technology-intensive exports. Moreover, the findings have significant implications for trade and industrial policies in OECD countries, to ensure the effectiveness of policies targeting the technological upgrading of exports.

An Analysis of Employment Status in Indian Handloom Industry

The handloom industry provides livelihood opportunities to many rural and urban populations in India. The present research was primarily focused on 13 major handloom practising states of India, each of which had more than one per cent share of total employment in India's handloom sector and covered 93 per cent of workers in this sector. The results showed the growth of employment in the handloom weaving sector and described the status of workers in the sector. Handloom census reports 2009-10 and 2019-20 form the database for the present study. It was observed that 4 states had a positive CAGR of the number of workers in the sector from 2009 to 2019, while it declined at the national level. The research also discussed the nature of work, engagement pattern, the average number of working days, average household income etc., and identified differences among the states.

Structural change in Africa: role of agriculture

ABSTRACT This paper argues that rapid agricultural productivity growth is necessary for the expansion of manufacturing employment as a share of total employment. This hypothesis is tested utilizing data from 15 African nations. The estimation technique utilized is dynamic ordinary least squares and represents the first use of this technique to study the hypothesis that agricultural productivity growth is an important factor in the growth of manufacturing employment. The results indicate that agricultural productivity growth is a significant positive factor in the expansion of manufacturing employment. This is important in that productivity growth in agriculture in Sub-Saharan Africa has until recently been very sluggish. Thus, if manufacturing is to play an important role in this region, then significant investment in raising agricultural productivity needs to occur.

COMPARISON OF WAGES IN ICT BY MAJOR CATEGORIES, THEIR RELATIONS TO GDP AND THE DIFFERENCES BETWEEN SALARIES OF MEN AND WOMEN

The article examines wages in the field of information and communication technologies (ICT). Based on the so-called ISPV data (adjusted for inflation), CZSO and Eurostat data, several analyses were performed. The main conclusions are: (1) The number of ICT workers grew faster, their share in total employment increased from 2.2% to 3.9%. (2) From 2008 to 2013, the overall trend in wages is declining and they have been growing significantly since 2014 (influenced by both economic growth and falling inflation). (3) Wages of ICT specialists (CZ ISCO 25) grew considerably faster than those of ICT technicians (CZ ISCO 35). 4) Wages for the entire ICT and for the CZ-ISCO 25 category grew faster than GDP. (5) The gender pay gap in the Czech Republic is among the highest among the countries surveyed, although in 2019 it decreased compared to 2008. (6) Within the Czech Republic, the differences between the salaries of men and women in ICT are smaller than for the entire economy.

Determinante profitabilnosti poljoprivrednog sektora u Vojvodini - uloga poreza na dobitak

Due to considerable share in total employment and foreign trade exchange, agriculture represents an important sector of the Serbian economy. It is, therefore, necessary to continuously analyze the financial performance of agricultural companies and key determinants of financial performance. The objectives of this paper are to analyze the corporate income tax burden of agricultural companies in Vojvodina, as well as its impact on company profitability. Statistical tests showed that effective corporate income tax rates (ETRs) in agricultural companies are significantly lower than the statutory corporate income tax rate. Furthermore, nearly 69% of observations have both a current ETR and cash ETR of 0%, which indicates that agriculture is an industry with an exceptionally low corporate income tax burden. Panel regression showed that agricultural companies with lower ETRs are more profitable than companies with higher ETRs. Results of the analysis are not sensitive to changes in corporate income tax burden and profitability proxies.

Peculiarities of the Development of the Financial and Economic System of Agriculture and Water Sector in Uzbekistan

In Uzbekistan agriculture plays a specific role in economic development because of its significant share in total employment and GDP. The aim of this paper is to analyze financial and economic system of agriculture and water sector. The special attention is devoted to the position of agricultural sector that may positive influence to support economic development and food security in the region. The results indicate main trends in economic development, and point that agriculture still dominates in terms of employment. Moreover, a significant reduction of agriculture’s share in GDP is to be expected in the future, while the shares of industry and services increase.

Deciphering the causes for the post-1990 slow output recoveries

This paper explores the causes for the slow output recoveries in the U.S. since 1990, via estimating a time-varying parameter vector autoregressive model with stochastic volatilities. The model incorporates routine employment as a share of total employment and two financial variables, to simultaneously evaluate the roles of labor-market-related and credit-related factors in determining output dynamics. Based on the estimated model, the counterfactual experiments highlight the crucial roles of routine biased technological changes and structural changes that shift investment dynamics in explaining post-1990 slow output recoveries.

Some Features of Deindustrialisation in EU15 During the Period 1999-2004: A Multivariate Analysis

During the past 40 years, employment in manufacturing, as a share of total employment, has steadily fallen in the world’s most advanced economies.In this paper the causes and the different modalities of deindustrialisation process are examined closely with reference to 13 of the first EU15 countries. The aim of the analysis is to empirically explore if deindustrialisation is primarily a natural outcome associated with the development of modern societies or, on the contrary, can be defined a symptom of the failure of a country manufacturing sector.To this end, the Analysis of Principal Components (PCA), applied on a n-way matrix, is used to obtain a synthesis of the factors influencing deindustrialisation. The multivariate analysis was carried out on the Eurostat data for the period 1999-2004, at a disaggregated level of manufacturing (i.e. Nace divisions), considering simultaneously the time, the regional and the sectorial effects. The estimates indicate that the main factors responsible of the dynamics of deindustrialisation have been efficiency and the scale of production processes in various manufacturing activities.

Agricultural Labour Productivity and Industrialisation: Lessons for Africa

Using data from the Groningen Growth and Development Center’s Africa Sector Database, we show that manufacturing employment and its share in total employment is growing in a number of African countries. We explore the extent to which this can be linked to agricultural productivity which has also been growing in much of Africa over the past two decades. We show that in countries that have successfully industrialised, there is a strong positive correlation between labour productivity growth in agriculture and the manufacturing employment share up until the point at which the manufacturing employment share peaks. Since 1996, there is also a positive correlation between labour productivity in agriculture and the manufacturing employment share in Africa. We explore the mechanisms behind these correlations and find evidence supporting the idea that increases in agricultural productivity have been associated with reductions in the employment share in agriculture and increases in income and the demand for locally produced products.

Does public sector crowd out entrepreneurship? Evidence from the EU regions

PurposeThe decision to engage in entrepreneurial activities is grounded in personal characteristics (motivation) and external environmental factors. One of the main external factors might be the structure of the regional economic activity. Does a high share of the public sector affect positively regional entrepreneurship or vice versa? Does the diversity in regional economic activity is conducive for entrepreneurial development or the regional comparative advantage as expressed by spatial economies of scale offering more entrepreneurial opportunities? Even though economic analysis has extensively examined the impact of the public sector size on the overall national economic activity (the crowding out effect), this impact has not been into scrutiny at regional level on microeconomic issues, such as the decision to engage in entrepreneurial activities. The authors further investigate the relation between diversity and entrepreneurship at regional level. The paper aims to discuss these issues.Design/methodology/approachThis paper uses data for 264 NUTS II EU regions. The time span of the data set is 1999-2008. The paper applies panel data analysis to explain the cross-time cross-section variation of the dependent variable: the self-employment share in total employment at regional level. In order to measure the existence of crowding out from public sector to regional entrepreneurship, the authors use the share of regional public sector gross value added over total regional gross value added. The diversity of the regional economic activity is measured by the Herfindahl-Hirschman Concentration Index across sectors.FindingsThe findings of the paper show that there is a negative correlation between public sector share and regional entrepreneurship. Hence, as at national level, the increase in the role of the public sector in the regional economic system crowds out regional entrepreneurship. The second finding indicates that the impact of the diversity of the regional economic activity on regional entrepreneurship is inconclusive.Originality/valueThe originality of this paper is due to the fact that the role of the public sector on regional economic phenomena, such as entrepreneurship, is examined for the first time. Also, the investigation of the relationship between diversity (vs localization economies) and entrepreneurship is performed using data for the full sample of regions of the European Union. The findings of the paper have significant policy implications since they provide useful inputs for the design of the regional development policy. The reduction of the public sector at regional level may contribute in entrepreneurial development and finally in regional economic growth and prosperity. Besides, the regional industrial policy should focus on the exploitation of the spatially constraint economies of scope in the framework of the Triple Helix model.

A practical tool for estimating compulsory OHS costs of residential building construction projects in Turkey

Construction industry is playing the most important role in the economic development not only in Turkey, but also in all developing countries. Turkish construction industry has reached its climax in the last 20years with 7.4% share in total employment and 11.5% growth in terms of GNP in recent years. Parallel to this growth, there has been an increase in the number of occupational accidents in Turkish construction industry as well. Small or middle scale residential projects have a big share in the industry and majority of fatal accidents usually occur on such work sites. This study focuses on compulsory investments of small or middle scale residential building construction projects such as safety staffing costs on-site, formal safety training courses, PPE, safety facilities and fee for laboratory examinations in employment procedures of workers. Based on these subcomponents of OHS measures, an extensive literature review has been made to single out specific risks and the measures to prevent those risks. These specific parameters are then incorporated into an existing computer program, which had been originally designed to calculate direct construction costs only. By calculating and making a budget for the cost of prevention at the beginning of construction projects, it provides a better understanding of safety costs during a building construction project implementation. Thus, it helps efforts to reduce loss of workers’ life and the mitigation of safety costs arising from severe injuries, fatalities, administrative procedures, legal obligations and litigation costs and expenses. The efficacy of the developed computer program is also tested on a construction project. The results reveal that the percentage of compulsory OHS costs to the direct construction costs is 5.15%, and OHS cost per unit area is approximately 8.47USD/m2.

As much to be gained by merchandise as manufacture? The role of services as an engine of growth

This article assesses the role of the services sector as an engine of growth during the 1985–2015 period. Results from testing services within a Kaldorian framework support the view that (a) manufacturing continues to remain important, but its contribution has weakened over time while that of services has become stronger, and (b) job creation is being driven predominantly by the services sector in countries at all income levels, although this is not always associated with productivity gains, raising concerns about its sustainability. In addition to the Kaldorian analysis, we use a shift-share decomposition of labor productivity to analyze the 2005–2015 decade for 11 economic activities. We find that the strongest contribution to overall productivity is provided by what we call “modern” services, mostly through labor reallocation from sectors with lower productivity levels. In contrast, the contribution of the manufacturing sector, although still positive, arises from “within”-sector changes in productivity, partially as a consequence of the sector’s lack of job creation. In light of technological change, and the impact it may have on low- and middle-skill jobs, it is likely that the job creating effects of manufacturing may decline further. Modern services—such as business activities and transport and communications, which are linked to manufacturing—appear to have characteristics similar to those of manufacturing, and are becoming important for countries at all income levels for economic growth overall. However, although expanding quickly, their share of total employment remains small.

Controversies on the Economic Effects of Fixed - Term Employment - Evidence from the OECD Countries

This paper focuses on fixed-term employment in the OECD countries, its trends and conditions, as well as controversies regarding its significance for flexibility of employment and labour market segmentation. Statistical data show that fixed-term employment significantly increased its share in total employment in many OECD countries in the last quarter century. The reasons of this trend can be sought in the lower labour cost of this type of employment, and the ease with which this group of employees can be dismissed, which was in part a result of the relaxed legal protection of fixed-term employment in the nineties. Analyses indicate that the increase in the share of fixed-term employment affect employment elasticity nonlinearly according to the shape of the letter U. The analyses support the hypothesis about the segmentation of the labour market as a result of the development of fixed-term employment.

The Role of Agriculture in Economic Development of Uzbekistan

Uzbekistan has huge opportunities, offering a potential for a considerable economic development. Among the other sectors, agriculture plays a specific role in economic development because of its significant share in total employment and GDP. The aim of this paper is to analyze main sectoral changes in GDP (agricultural, industrial and services sector) that occurred during last two decades, and to investigate the relationship between GDP and agricultural growth in relation to the value added in agriculture. The special attention is devoted to the position of the agricultural sector that may positive influence to support economic development and food security in the region.The results indicate main trends in economic development and point that agriculture still dominates in terms of employment. Moreover, a significant reduction of agriculture’s share in GDP is to be expected in the future, while the shares of industry and services increase.

HOW DID EXCHANGE RATES AFFECT EMPLOYMENT IN U.S. CITIES?

I. INTRODUCTION Substantial U.S. dollar depreciation is sometimes considered a solution to the problems of the large U.S. current account deficit and declining manufacturing employment. However, existing studies report mixed evidence about the size of the effects of exchange rate movements on employment in advanced economies. Two early studies based on data from the United States, Branson and Love (1988) and Revenga (1992), did report large estimated effects. Revenga (1992), for example, finds that the U.S. dollar's appreciation in the early 1980s reduced employment by about 6%. Some later studies based on larger samples, however, report much smaller estimates of the employment effects in the United States (Campa and Goldberg 2001; Goldberg and Tracy 2000; Klein, Schuh, and Triest 2003). Klein, Schuh, and Triest (2003), for example, find that two consecutive annual 5.4% (one-standard deviation) appreciations of the cyclical component of the exchange rate reduce net employment growth in the manufacturing industries by 0.7%. Meanwhile, other recent papers report a large effect of exchange rate on employment in advanced economies, including Canada (Huang, Pang and Tang 2014; Leung and Yuen 2007), France (Gourinchas 1999; Hatemi-J and Irandoust 2006), Italy (Nucci and Pozzolo 2010), and the United States (Faria and Leon-Ledesma 2005). In these papers, a 1% appreciation is typically associated with a 0.5% to 1% decrease in employment. Almost all these previous studies focus on manufacturing industries, which are traditionally regarded as the tradable industries in an economy. Although the manufacturing sector plays an important role in the economy, its share in total employment is typically below 15% in developed countries. Consequently, if the exchange rate affects employment only in the manufacturing industries, its effect on national employment would likely be small. Meanwhile, there are a number of ways in which the exchange rate can affect nonmanufacturing industries, even if those industries have little or no exposure to international trade. For example, one such channel is a potential demand knock-on or spillover effect. If a depreciation strengthens the demand facing the domestic manufacturing industries, these industries, and their workers, will in turn demand more products and services from the domestic nonmanufacturing sector, potentially boosting its employment. In this article, we update the research on the employment effects of exchange rates with more recent data and using a novel source of variation, those arising from differences in local industrial composition. In addition, we broaden the analysis to include the exchange rate movement's indirect employment effect on the non manufacturing sector, which hires far more labor than the manufacturing industries. Specifically, we analyze the data from major U.S. Metropolitan Statistical Areas (MSAs), which we will refer to as cities. These cities have different mixes of manufacturing industries that have potentially different trading partners. In a particular year, a specific city can be subject to larger or smaller exchange-rate changes than other cities because of different industrial compositions. We will exploit this variation of the exchange rate across cities to estimate their effects on manufacturing jobs. To estimate the exchange rates' spillover effects on nonmanufacturing industries, we exploit nonmanufacturing products' relative lack of tradability. The key assumption is that the demand for nonmanufacturing products is, in part, local. Hence the economic misfortune of a city's manufacturing industries has negative impacts on local nonmanufacturing industries. The local connections could arise because the manufacturers source some of their inputs locally (think construction, maintenance, or other business services that cannot be provided remotely), or because those manufacturers' employees must consume locally produced goods and services like housing, retail, and restaurant services. …

The impact of the great recession on employment polarization in Spain

This article analyzes changes in the occupational employment share in Spain for the period 1997–2012 and the way particular sociodemographic groups adapt to those changes. There seems to be clear evidence of employment polarization between 1997 and 2012 that accelerates over the recession. Changes in the composition of the labour supply cannot explain the increase in the share of occupations at the low end of the wage distribution. Sector reallocation may have partially contributed to explain the polarization process in Spain during the years of expansion (1997–2007) but it is a minor factor during the recession. The polarization of occupations within sectors observed, especially during the recession, appears to be related to a decline in routine tasks which is compensated by an increase in occupations with non-routine service contents, which are found both in the low and high end of the wage distribution. Instead, jobs with a higher degree of abstract contents do not appear to increase their share in total employment during these 15 years. The paper finds that this process has affected males more strongly than females because of their higher concentration in occupations more focused on routine tasks. Among males, for workers under 30 years old, we find a decrease in the share of occupations with more routine tasks which turns into increases in those with more abstract content and particularly with more non-routine service content. Instead, male workers over 30 years old seem to remain in declining occupations to a greater extent. Females of different ages are not affected by the abovementioned changes.

Employment Polarisation in Spain Over the Course of the 1997-2012 Cycle

This article analyses changes in the occupational employment share in Spain for the period 1997-2012 and the way particular sociodemographics adapt to those changes. There seems to be clear evidence of employment polarisation between 1997 and 2012, which accelerates over the recession. Changes in the composition of the labour supply cannot explain the increase in the share of occupations at the low end of the wage distribution. Sector reallocation might have partially contributed to explaining the polarisation process in Spain during the years of expansion (1997-2007), but it is a minor factor during the recession. The polarisation of occupations within sectors observed especially during the recession appear to be related to a decline in routine tasks. This is compensated by an increase in occupations with non-routine service contents, which are found both at the low and high end of the wage distribution. Instead, abstract content-intensive jobs do not appear to increase their share in total employment during these 15 years. The paper finds that this process has affected males more than females because of the higher concentration of the former in more routine-intensive occupations. Among males, for workers under 30 years we fi nd a decrease in the share of occupations with more routine tasks, which turns into increases in others with more abstract content and particularly with more nonroutine service content. Instead, male workers over 30 years seem to remain in declining occupations to a greater extent. Females of different ages are not affected by the above mentioned changes.