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Sectoral Economic Growth and Employment in Mexico, 1996-2001

Author

Listed:
  • Aniel A. Altamirano Ogarrio

    (Universidad de las Americas-Puebla)

  • Mario M. Carrillo Huerta

    (Universidad de las Americas-Puebla)

  • Jose A. Ceron Vargas

    (Universidad de las Americas-Puebla/Instituto Politecnico Nacional)

Abstract

This paper shows the results from a study of the impact of sectoral economic growth on unemployment in Mexico for the period 1996-2001, realized by applying a disaggregate approach on data from the National Employment Survey (Encuesta Nacional de Empleo). The paper, which draws from some previous work related to Okun´s Law, includes a discussion of the theoretical aspects of the sectoral contributions to growth, as well as of the relationship between production and employment and the working of labor markets, and it also describes the recent evolution of unemployment in Mexico. The core of the paper rests upon the analysis of panel data to estimate the open unemployment rate; it also includes the study of regional urban/rural growth and unemployment in different sectors for ten different Mexican regions. The results from the analysis at the regional level show that unemployment in Mexico has a statistically significant negative effect on sectoral economic growth. Also, evidence was found suggesting that promoting sectoral-regional (urban/rural) growth could be an effective way to reduce unemployment.

Suggested Citation

  • Aniel A. Altamirano Ogarrio & Mario M. Carrillo Huerta & Jose A. Ceron Vargas, 2005. "Sectoral Economic Growth and Employment in Mexico, 1996-2001," EconoQuantum, Revista de Economia y Finanzas, Universidad de Guadalajara, Centro Universitario de Ciencias Economico Administrativas, Departamento de Metodos Cuantitativos y Maestria en Economia., vol. 2(1), pages 63-90, Julio-Dic.
    • Handle: RePEc:qua:journl:v:2:y:2005:i:1:p:63-90
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    References listed on IDEAS

    as
    1. Hayami, Yujiro & Ruttan, V W, 1970. "Factor Prices and Technical Change in Agricultural Development: The United States and Japan, 1880-1960," Journal of Political Economy, University of Chicago Press, vol. 78(5), pages 1115-1141, Sept.-Oct.
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    More about this item

    Keywords

    Sectoral growth; unemployment; Okun’s Law; panel data.;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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