The impact of TFP growth on the unemployment rate: Does on-the-job training matter?

Galbis, Eva Moreno

doi:10.1016/j.euroecorev.2012.09.004

Cited by 13 publications

(5 citation statements)

References 40 publications

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“…Studies like Pissarides and Vallanti (2007) show a negative correlation between growth and unemployment without making a distinction between skilled and low‐skilled workers. Moreno‐Galbis (2012), on the other hand, shows in a model with high‐ and low‐skill workers that while the high‐skilled ones benefit from growth (a stronger capitalization effect), the low‐skilled workers are faced with higher unemployment when growth accelerates (a stronger creative destruction effect).…”

Section: The Modelmentioning

confidence: 99%

International trade, intellectual property rights and the (un)employment of migrants

Guichard

Stepanok

2023

World Economy

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We study the effect of trade liberalisation and intellectual property rights (IPR) protection on the unemployment rate of migrants relative to nonmigrants. We build a North–South trade and growth model with a positive steady state rate of migration. We find that bilateral trade liberalisation decreases the relative unemployment rate of migrants when migration is low and increases the relative unemployment rate when the migration rate is high. The results do not rely on assumptions about network effects, the probability to find a job for a migrant is independent of the relative size of the migrant diaspora. IPR protection leads to a higher relative unemployment rate of migrants regardless of the size of migration. We provide suggestive empirical evidence in line with the theoretical predictions on trade liberalisation and IPR protection using data for 20 OECD countries over the period 2000–2014.

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Section: The Modelmentioning

confidence: 99%

International trade, intellectual property rights and the (un)employment of migrants

Guichard

Stepanok

2023

World Economy

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“…Pissarides and Vallanti (2007) for instance argue that the creative destruction effect does not play a significant role in explaining steady‐state unemployment. Moreno‐Galbis (2012), on the other hand, finds that the creative destruction effect does play a role, growth leads to higher unemployment for unskilled workers without training.…”

Section: The Model: No Imitation and Free Tradementioning

confidence: 99%

FDI and unemployment, a growth perspective

Stepanok¹

2022

Rev International Economics

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North-South foreign direct investment (FDI) is frequently viewed as a process in which jobs relocate from the North to the South. I build a growth model with two asymmetric trading economies, the North where firms innovate and the South where Northern firms invest to take advantage of lower wages. Contrary to expectation, I find that lower FDI costs increase unemployment both in the North and in the South. There are two effects of FDI on unemployment, a direct positive one which contributes to the turnover of firms parallel to innovation. The indirect effect appears through innovation and growth: more FDI means higher innovation, this intensifies firm turnover and increases the unemployment rates in both countries even further. I solve the model analytically without trade costs and imitation of products in the South. For the version with trade costs and imitation I offer a numerical solution in which I also look at the effect of FDI on welfare and find a positive relation. In addition to FDI, I explore how intellectual property (IP) rights protection affects unemployment and welfare. Both are higher in a steady state with stricter IP protection. ZusammenfassungNord-Süd Direktinvestitionen werden oft als ein Prozess der Verlagerung von Jobs vom Norden in den Süden betrachtet. In diesem Papier wird ein Wachstumsmodell mit zwei asymmetrischen Ländern entwickelt; der Norden, wo Firmen in Forschung und Entwicklung investieren, und der Süden, in den sie später aufgrund niedriger Kosten Ihre Produktion verlagern. Ein Ergebnis des Modells ist, dass entgegen der Erwartung niedrigere Kosten für ausländische Direktinvestitionen die Arbeitslosigkeit sowohl im Norden als auch im Süden steigern. Die Direktinvestitionen erhöhen die Arbeitslosigkeit durch zwei Effekte: erstens tragen sie direkt, parallel mit der Innovationsrate, zu dem Eintritt und Austritt von Firmen bei; zweitens, indirekt durch Forschung und Entwicklung, in dem sie die Innovationsrate und dadurch die schöpferische Zerstörung von Produkten erhöhen, was am Ende die Arbeitslosigkeit noch weiter steigert. Wohingegen das Modell ohne Imitation von Produkten im Süden und ohne Handelskosten analytisch gelöst werden kann, wird die Version mit Imitation im Süden und mit Handelskosten numerisch gelöst. In dieser numerischen Version untersuche ich nicht nur die Wirkung von ausländischen Direktinvestitionen auf Arbeitslosigkeit, sondern auch auf das Wohlfahrtsniveau, dabei finde ich einen positiven Zusammenhang. Zusätzlich untersuche ich die Wirkung des Schutzes geistigen Eigentums auf Arbeitslosigkeit und Wohlfahrt. Es zeigt sich, dass beide in einem Gleichgewicht mit stärkerem Schutz höher ausfallen.

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“…We introduce as a first variable an indicator of the overall economic activity and the growth rate of the GDP. It is accepted that economic expansion is associated with low unemployment (Ball, De Roux, & Hofstetter, 2013; Freeman, 2001; Moreno-Galbis 2012; Sögner & Stiassny, 2002; Stober, 2015). However, this negative relationship between the unemployment rate and the economic growth depends mainly on the sample and the context explored (see, inter alia , Huang & Yeh, 2013; Meyer & Tasci, 2012; Villaverde & Maza, 2009).…”

Section: Data and Variables Descriptionmentioning

confidence: 99%

Labor Market Institutions and Performance Economic Within Trial Labor Market Models: Flexibility, Rigidity, and Flexicurity

Sahnoun

Abdennadher

2019

The Review of Black Political Economy

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The purpose of this article is to identify economic performance through three labor market models (flexibility, rigidity, and flexicurity) that result from the effect of the labor market regulation. After conducting a comparative analysis of the flexibility, rigidity, and flexicurity models of the labor market using a feasible generalized least squares (FGLS) applied to 18 organisation for economic co-operation and development (OECD) countries for the period between 2005 and 2013, we reached the following results. First, the effect of the labor market regulation on the unemployment rate appears to be particularly important for demographic groups (women and young people) on the flexible labor market. The union density and bargaining coverage seem to have the best results in the unemployment rate on the flexible market. More coordinated collective bargaining appears to reduce unemployment on the rigid labor market compared with the flexible one. However, our results are opposed to the neoclassical assertions which suggest that women are excluded from the permanent employment when a strict employment protection legislation (EPL) is excised. We also show that the replacement rate, the duration of unemployment benefits, the active labor market policies, permanent immigration inflows, and the tax wedge seem to have the best results on the flexible labor market, while the other variables have mixed effects on the different models of the labor market. These findings can provide policy makers and regulators with a better understanding of the performance of the flexible labor market and its behavior in the face of labor market institutions and adverse economic shocks. In fact, the government should liberalize strict labor laws.

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The impact of TFP growth on the unemployment rate: Does on-the-job training matter?

Cited by 13 publications

References 40 publications

International trade, intellectual property rights and the (un)employment of migrants

International trade, intellectual property rights and the (un)employment of migrants

FDI and unemployment, a growth perspective

Labor Market Institutions and Performance Economic Within Trial Labor Market Models: Flexibility, Rigidity, and Flexicurity

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