Abstract
The relationship between employment and productivity is examined to determine if a tradeoff exists between the two variables. The study focuses on OIC member countries and applies time-series econometric techniques to analyze both the long-run and dynamic relationships. The results suggest that high levels of employment (or its growth) are linked with lower levels of productivity (or its growth) for 5 out of the 22 countries studied. Yemen is the only country that exhibits a positive relationship between employment and productivity. However, for this case, both these variable are endogenous which implies that other factors are driving the two variables. For other countries, a long-term employment-productivity relationship is not supported. The findings of the study can be useful in providing some observations to policy makers to improve the standard of living and achieving sustainable growth for their nations.
Article Details
- Year: 2007
- Volume: 28
- Issue: 1
- Accepted: 01.12.2006
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How to Cite?
Selamah Abdullah Yusof (2007). Employment and Productivity Link: A Study on OIC Member Countries. Journal of Economic Cooperation and Development, 28(1), -.
