Growth and Jobs in Developing Economies: Trends and Cycles
This paper focuses on low and lower middle-income countries along 2 dimensions: growth patterns and short-run correlations
Abstract
This paper investigates the relationship between economic growth and job creation in developing economies with a focus on low and lower middle-income countries along 2 dimensions: growth patterns and short-run correlations. Analysis on growth patterns shows that regime changes are quite common in both economic growth and employment growth, yet they are not synchronized with each other. Okun’s Law—the short-run relationship between output and labor market—holds in half of the countries in our sample and shows considerable cross-country heterogeneity.
This work is part of the ‘Macroeconomics in Low-income countries’ programme
Citation
Zidong An, Tayeb Ghazi, Nathalie Gonzalez Prieto (2017) Growth and Jobs in Developing Economies: Trends and Cycles. IMF Working Paper No. 17/257