Long-term employment intensity of sectoral output growth in Tunisia

Abstract

This article examines the long-term ability of Tunisian industries to generate employment opportunities. Using a panel data set of 15 industries over 1983–2010, the authors estimate their long-run output–employment elasticities, using the “mean group” estimator. They argue that economic policy should target the most labour-intensive industries, particularly service industries and export manufacturing industries. After demonstrating the inability of the mining industry to absorb labour, the authors highlight the long-run jobless growth in the hotel, bar and restaurant industry and suggest that future investment in this industry will yield no results and that future tourism policy should focus rather on para-tourism activities.