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The Structure and Evolution of Production, Employment and Human Capital in Portugal: an Input-Output Approach

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  • João Carlos Lopes
  • João Ferreira do Amaral

Abstract

The main purpose of this paper is to analyse the structure and evolution of production, employment and human capital in Portugal, using an inter-industry approach. A descriptive analysis of the sector composition of gross output, value added and employment is made, followed by a quantification of changes in relative labour productivity and primary input content of final demand components. Next, the evolution of employment multipliers is quantified, as well as the structure of labour force qualifications by sector. Although remarkable improvements have been achieved in the past, the low educational levels of its workers, on average, remains one the main vulnerabilities of Portugal in the global and knowledge economy of our days. In this context, the main contribution of the paper is the quantification of human capital requirements of final demand changes by component. Using an input-output approach combining sector productivities and labour qualifications, output multipliers and final demand structure, it is possible to quantify the growth in employment by level of qualification resulting from a unitary growth of private and public consumption, investment and exports. This exercise is made for 1995 and 2008, using input-output domestic flow tables from INE and DPP and employment qualifications from Quadros de Pessoal database.

Suggested Citation

  • João Carlos Lopes & João Ferreira do Amaral, 2013. "The Structure and Evolution of Production, Employment and Human Capital in Portugal: an Input-Output Approach," Working Papers Department of Economics 2013/24, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
  • Handle: RePEc:ise:isegwp:wp242013
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    References listed on IDEAS

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    1. Álvaro A. Novo & Mário Centeno & Nuno Alves, 2010. "Investment in Education in Portugal: Returns and Heterogeneity," Economic Bulletin and Financial Stability Report Articles and Banco de Portugal Economic Studies, Banco de Portugal, Economics and Research Department.
    2. João Do Amaral & João Dias & João Lopes, 2012. "A new kind of production and value-added multiplier for assessing the scale and structure effects of demand shocks in input–output frameworks," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 49(1), pages 103-115, August.
    3. João Carlos Lopes, 2011. "High Employment Generating Industries in Portugal. An Input-Output Approach," Working Papers Department of Economics 2011/24, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    4. João Ferreira do Amaral & João Carlos Lopes & João Dias, 2011. "External dependency, value added generation and structural change: an inter-industry approach," Notas Económicas, Faculty of Economics, University of Coimbra, issue 33, pages 06-19, June.
    5. Miller,Ronald E. & Blair,Peter D., 2009. "Input-Output Analysis," Cambridge Books, Cambridge University Press, number 9780521517133.
    6. Barro, Robert J. & Lee, Jong Wha, 2013. "A new data set of educational attainment in the world, 1950–2010," Journal of Development Economics, Elsevier, vol. 104(C), pages 184-198.
    7. Miller,Ronald E. & Blair,Peter D., 2009. "Input-Output Analysis," Cambridge Books, Cambridge University Press, number 9780521739023.
    8. António Rua & Hugo Reis, 2006. "An input-output analysis: linkages vs leakages," Working Papers w200617, Banco de Portugal, Economics and Research Department.
    9. Ricardo Reis, 2013. "The Portugese Slump and Crash and the Euro Crisis," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 44(1 (Spring), pages 143-210.
    10. Ricardo Reis, 2013. "The Portugese Slump and Crash and the Euro Crisis," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 44(1 (Spring), pages 143-210.
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    Cited by:

    1. LOPES, Joao Carlos & SANTOS, Ana, 2016. "Vertical Specialization, Global Value Chains And International Trade: The Rubber And Plastics Industry In Portugal And Comparison With Northern And Southern Eu Countries," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 16(2), pages 15-28.
    2. José da Silva Costa & Ruben Fernandes & Ana Natálio, 2014. "Household Sorting and Politics: Empirical Evidence for the Metropolitan Area of Porto (Portugal)," FEP Working Papers 525, Universidade do Porto, Faculdade de Economia do Porto.

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    More about this item

    Keywords

    Employment; Human Capital; Input-Output Analysis; Portugal;
    All these keywords.

    JEL classification:

    • C57 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Econometrics of Games and Auctions
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models

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