Measuring the effects of changing structure on employment generation potential

D.E.J. Henderson, P.G. McGregor, I.H. McNicoll

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Abstract

This article describes a method for examining components of structural change in an open economy. A distinguishing characteristic of the method is that changes in external trade behavior are explicitly recognized as a separate component of structural change. The method is utilized to examine the effects of structural change on employment-generating potential in Scotland between 1973 and 1979. Overall, employment generation potential (employment multipliers per unit final demand) fell over the six-year period. Changes in import propensities and employment/output coefficients both led to reductions, but the negative contributions of these components were partially offset by increased use of intermediate inputs. For a number of industries, the changes in employment generation potential and the contributions of the individual components differed substantially from the Scottish average.
Original languageEnglish
Pages (from-to)57-65
Number of pages8
JournalInternational Regional Science Review
Volume12
Issue number1
DOIs
Publication statusPublished - 1989

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Keywords

  • changing structure
  • employment
  • Scotland

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