Labor Movement and Economic Contribution : Evidence from Europe

durongkaveroj, wannaphong and Roongsaprangsee, chamaiporn (2014): Labor Movement and Economic Contribution : Evidence from Europe.

Abstract

A movement of labor across sectors is the familiar scenario in every country. Labor generally moves from relatively low-paid sector to relatively high-paid sector. The purpose of this study is to estimate the effect of a change in employment in agricultural, industrial, and service sector on economic performance through panel data analysis. The result reveals that only a movement in industrial sector positively contributes to the economy which leads to the integrated policy aimed at improving the condition in manufacturing sector.

• Item Type: MPRA Paper
• Language: English
• Keywords: labor movement; economic growth; panel data
• Subjects: J - Labor and Demographic Economics > J4 - Particular Labor Markets > J43 - Agricultural Labor Markets; J - Labor and Demographic Economics > J6 - Mobility, Unemployment, Vacancies, and Immigrant Workers > J60 - General; O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O53 - Asia including Middle East

References

Fan, S., Zhang, X., & Robinson, S. (2003). Structural change and economic growth in China. Review of Development Economics, 7(3), 360-377.

Hussin, F., & Yik, S. Y. (2012). The contribution of economic sectors to economic growth: The cases of China and India. Research in Applied Economics, 4(4), 38-53.

Koo, W. W., & Lou, J. (1997). The relationship between the agricultural and industrial sectors in Chinese economic development. Agricultural Economics Report No. 368.

Lewis, A. (1954). Economic development with unlimited supplies of labour. The Manchester School, 22(2), 139-191.

Linden, M. & Mahmood, T. (2007). Long run relationships between sector shares and economic growth: A panel data analysis of the Schegen region. University of Joensuu, Finland.

Raza, S. A., Ali, Y., & Mehboob, F. (2012). Role of agriculture in economic growth of Pakistan. International Research Journal of Finance and Economics, 83(2012).

Subramaniam, V., & Reed, M. (2009). Agricultural inter-sectoral linkages and its contribution to economic growth in the transition countries. Paper presented at the International Association of Agricultural Economists Conferences, Beijing, China, August (2009).

Wilfrid, A. H. L., & Edwige, K. (2004). Role of agriculture in economic development of developing countries: Case of study of China and Sub-saharan Africa (SSA). Journal of Agriculture and social Research, 4(2).