Abasyn Journal of Social Sciences. Special Issue: AiCTBM 2016

Estimating Employment Elasticity of Growth for Pakistan

Muhammad Siddique, Kiran Mustafa, Altaf Hussain, Muhammad Muddassar KhanMuhammad Fayaz KhanFaizan Qureshi

Associate Professor, Economics, Government postgraduate College # 01Abbottabad,Pakistan.
Lecturer Economics, Department of Economic, Abbottabad University of Science andTechnology, Abbottabad, Pakistan.
Assistant professor Economics, Islamia College University, Peshawar, Pakistan.
Lecturers, Department of Management Sciences, and IT, Abbottabad University of Scienceand Technology, Abbottabad, Pakistan


The main objective of present paper is to investigate quantitatively the effect of economicgrowth on employment in Pakistan for 2015 through 1981. The study carries out EngleGranger co-integration Approach and employment elasticity formula to capture the impact ofeconomic growth on employment. The results of the study show that overall employmentelasticity of growth in Pakistan for the study period is 0.45 which suggests that economicgrowth in Pakistan is employment creating. Co integration results are also consistent withresults calculated through former method. The study concludes that economic growth inPakistan between 1981 and 2015 acted as catalyst to create labor market at large. The studysuggests that not only sustained and balance economic growth but process of economicgrowth, which generates new jobs, is extremely vital to increase the employment elasticity ofgrowth.
Keywords: Economic Growth, Employment Elasticity, Co integration.


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