The Employment Impact of Differences in Dmand and Production



Table of Contents

INTRODUCTION _________________________________________________________________ 1

1   THE INPUT-OUTPUT APPROACH TO EMPLOYMENT: THE VERTICALLY INTEGRATED

SECTOR ___________________________________________________________________ 5

2   JOB CREATION ACROSS VERTICALLY INTEGRATED SECTORS OVER TIME AND

ACROSS COUNTRIES ________________________________________________________ 9

3   JOB CREATION IN VERTICALLY INTEGRATED SECTORS: MANUFACTURING VS.

SERVICE INDUSTRIES_______________________________________________________ 13

4   THE EMPLOYMENT EFFECTS OF FINAL DEMAND AND CONSUMPTION MIXES

WITHIN THE SIX ECONOMIES _______________________________________________ 17

5   THE EMPLOYMENT EFFECTS OF DEMAND AND CONSUMPTION MIXES ACROSS

ECONOMIES ______________________________________________________________ 25

6   THE SOURCES OF EMPLOYMENT CHANGE IN THE VERTICAL INTEGRATED SECTOR _29

7   CONCLUSIONS ON THE ROLE OF SERVICES____________________________________ 35

REFERENCES ___________________________________________________________________ 37

APPENDIX 1: THE DATA_______________________________________________________ 41

Appendix 2: The Input - Output System 45

APPENDIX 3: ON THE INDEPENDENCE OF THE EMPLOYMENT MATRIX FROM THE PRICE

LEVEL ________________________________________________________________ 49

AppENDIX 4: THE DECOMpOSITION OF THE EMpLOYMENT MATRIX _________________ 51



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