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Identifying the Determinants of Employment Elasticity of Economic Growth

  • Choi Chang Kon
Chapter

Abstract

This paper aims to look at the long run relationship between economic growth and employment. Recently, experienced by job shortage in many countries, labor economists have come to pay attention to the relationship between job creation and economic growth. One frequently mentioned observation is that the employment does not increase enough even when the economy is growing, which is named “Jobless growth”. Based on this observation, this paper attempts to identify the structural determinants of employment elasticity with respect to capital accumulation. If there exists any structural relationship between employment and capital accumulation, it is presumed that it is determined by preference and technology parameters, mainly the structure of labor market. This paper shows how the employment elasticity with respect to capital is related to the structure of labor market and other characteristics of the economy. The latter are tax system and capital market.

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Copyright information

© Springer Nature Singapore Pte Ltd. 2018

Authors and Affiliations

  1. 1.Chonbuk National UniversityJeonjuSouth Korea

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