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Characteristics and Drivers of the Swiss “Job Miracle”

Author

Listed:
  • Siegenthaler Michael

    (ETH Zurich, Switzerland)

  • Graff Michael

    (ETH Zurich, Switzerland)

  • Mannino Massimo

    (University of St. Gallen, Switzerland)

Abstract

Switzerland’s employment growth since the early 2000s was very high in both historical and international perspective, despite solid real wage increases and only moderate GDP growth. Yet, the reasons for the remarkable creation of jobs are largely unknown. We aim at filling this gap by studying the underlying characteristics and drivers of the Swiss “job miracle”. We first outline the characteristics of the “job miracle” and show that the observed job growth correlates with a substantial increase in the labor intensity of economic activity. We then discuss five potential drivers of the unprecedented employment growth, which are consistent with the facts. Our empirical results suggest that immigration was the key factor in explaining the “job miracle” as it raised local demand and thereby triggered the creation of additional jobs.

Suggested Citation

  • Siegenthaler Michael & Graff Michael & Mannino Massimo, 2016. "Characteristics and Drivers of the Swiss “Job Miracle”," Review of Economics, De Gruyter, vol. 67(1), pages 53-89, May.
    • Handle: RePEc:lus:reveco:v:67:y:2016:i:1:p:53-89:n:1
    DOI: 10.1515/roe-2015-1005
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    More about this item

    Keywords

    labor market; Swiss job miracle; job creation; employment forecasts; migration; local multipliers;
    All these keywords.

    JEL classification:

    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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