Unemployment in Developed and Developing Countries

Powerful Essays
Introduction
Attaining a full employment level, where only a natural level of unemployment exists, is one important macroeconomic objective and they key to this attaining this objective is job creation. This report is a cross sectional econometric analysis of how different factors lead to the creation of jobs in countries with differing Gross National Income per capita. When speaking of job creation, one can expect that the impact and the significant importance of a factor, such as growth rate of the agriculture sector, would vary across developing and developed nations. In nations with high national income the agriculture sector is highly capital intensive and higher growth rates in production are achieved through improvements in crop yield. In such countries we can expect that there would not be a significant relationship between employment and growth of agriculture. However in low income countries, farmers are unable to afford expensive technology, such as hybrid seeds, expensive machinery, etc. Therefore the agriculture sector is largely labor intensive in these countries and therefore we can expect a relationship between growth rate of agriculture and employment in these countries. In this report we look at 5 such factors that may have a different impact on employment among countries of different income groups.
Objective
The objective of this report is to find out which factors have a significant impact on employment in low income and high income countries. Also, I have aimed to show that these independent variables have a significantly different impact on employment across countries with different Gross National Income.
The Dependent and Independent Variables
The dependent variable taken in this report, as a proxy for employment, is the employment to population ratio. Specifically we will be looking at how different factors lead to changes in the percentage of people employed (above 15 years of age) across different countries. When looking at factors of



References: Rashid, M.A.(2009). Manufacturing and trate in bangladesh :Analysis of issues and policy suggestions. 2-16 Gujrati, N. D.(2004). Basic Econometrics(4th ed.). New Dehli: Tata McGraw-Hill Publishing Company Limited. Quantative Micro Software (2004). E Views5 User’s Guide.USA World Data Bank. (2011). World Development Indicators and Global Development Finance. Retrieved from http://databank.worldbank.org/ddp/home.do?Step=2&id=4&DisplayAggregation=N&SdmxSupported=Y&CNO=2&SET_BRANDING=YES

You May Also Find These Documents Helpful

  • Better Essays

    America and India Introduction Developing country means the countries compared with the developed countries have lower degree of development of the economic and social aspects. Developing countries have a vast territory, large population, vast market and rich natural resources. There are many strategic places, in terms of economic, trade, or from the military, occupied an important strategic position. China is the largest developing country. Developed country Refers to a higher level of economic…

    • 1608 Words
    • 7 Pages
    Better Essays
  • Satisfactory Essays

    Global Inequalities and Active Citizen Report My developed country is Australia. My developing country is Vietnam. PART A: World Map PART B: Table Questions Developed: Developing: 1 What is the population? 23,050,000 90,796,000 2 What is the gross national income per person? 43,300 3,620 3 What is the global average? 12,018 12,018 4 What is the life expectancy of men and woman combined? 81-85 years 71-80 years 5 What is the global average? 62 62 6 What is the ‘Under-five…

    • 452 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    KATILI UNIVERSITY OF NAIROBI WELFARE ECONOMICS PROFESSOR KAMAU Abstract Unemployment can be defined as a state where by people are unable to contribute to the economic growth due to lack of jobs. These people must however be qualified and constantly looking for a job without any success. They therefore fail to secure an opportunity that can enable them to earn their living. Because of unemployment, people are unable to contribute to the economic growth, not because they are weak, but…

    • 608 Words
    • 3 Pages
    Good Essays
  • Good Essays

    between two major demographic groups: developing and developed countries. Developing countries make up majority of world’s population, about 82%. Regardless of lower income levels and education than the developed countries, they are experiencing rapid growth in many aspects through globalization. Developed countries consist of approximately 18% of overall population and are considered economically stable and wealthy with higher than developing countries income and education levels. Differences…

    • 535 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    What distinguishes a developing country from a developed country (10mks) ADVICE: All the indicators are examined here with supporting statistics. There won’t be time to include statistics for all the indicators, so you’ll include those that you most easily remember). Countries can be classified as developed or developing according to the value of the gross national product (GNP) per capita. A developing country can be distinguished from a developed country by examining indicators…

    • 1798 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    Global warming in developed and developing countries If the Quelccaya ice cap in Peru melts continually at its current rate, it will leave thousands of people who rely on it for drinking or electricity without the insource. (IPCC, 2007report)This phenomenon is attributed to the global warming caused by fossil fuel burning. The United Nations has set a target for the world’s government to integrate the principles of sustainable development into country policies and programmes and reverse the loss…

    • 904 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Drama 88 Day 4 The Gap between Developed and Developing Countries The main topic of this week’s reading that stood out to me was The Global Table where Foer shows a glimpse of the status of the all the countries in the world. Foer says that if all the countries were to sit on a table with a seat of nine, two would be Chinese, two Indians, a fifth would be the other countries in Northeast, South, and Central Asia, a sixth would be the nations of Southeast Asia and Oceana, a seventh would be sub-Saharan…

    • 782 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Developed Countries

    • 928 Words
    • 3 Pages

    In today's sophisticated society, people of the developing countries are still fighting for their basic rights such as better healthcare, proper education and a sound source of income. While Because the governments of the underdeveloped countries are struggling to improve the living standards of their people, I believe that contributions by richer nations should be more in this regard. Firstly, in the field of healthcare, developed countries can support heunderdeveloped in many ways. They can send…

    • 928 Words
    • 3 Pages
    Good Essays
  • Good Essays

    1. How ICT affects developed countries In developed countries, people have enough money to purchase the latest equipment and gadgets. They are also highly knowledgeable as they have money to spend on training to improve their skills. Due to CAD and CAM software, work is becoming more efficient. The medicine field is also advancing and new cures to diseases (Eg: cure for HIV) are being found due to the improvement of technology. The number of crimes (Eg: identity theft, hacking, credit card fraud)…

    • 476 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Developed Countries

    • 830 Words
    • 3 Pages

    equally. Would you like being unable to communicate with others? Would you like being unable to read or write? Some people in the underdeveloped/ developing countries are not able to read nor write. We live in a sophisticated society, where developed countries want better education, better life style, and better healthcare. Whereas in the underdeveloped countries, they want a place where they can express their thoughts, a place where they can hold a pencil and place where they can learn about who they…

    • 830 Words
    • 3 Pages
    Satisfactory Essays