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