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• W4382400190 abstract "Africa is endowed with both natural resources and a young growing workforce. In light of this, it is obvious that regulations on labour markets will have significant impacts on economic growth, especially through effects on employment and productivity. This study provides information on labour market regulations (labour market flexibility) and their impacts on economic growth in Africa. In particular, this study examines the impact of labour market flexibility (regulations) on economic growth (real GDP per capita growth) relying on the Driscoll-Kraay fixed-effects estimator and the two-step system generalized method of moments (GMM) estimation techniques using data from 2000 to 2019 for 37 African countries. The results show a positive correlation, indicating that liberalizing rigid labour market regulations can lead to economic growth benefits. Specifically, it is observed that economic growth increases by approximately 0.16% resulting from a unit (one standard deviation) increase in labour market flexibility. The study also finds that economic growth (real GDP per capita growth) is high in countries that have flexible hour regulations, flexible mandatory costs of worker dismissal, and the absence of (or not strictly enforced) military conscription. These findings have important implications for African governments and policymakers as they may find it useful to liberalize the prevailing rigid labour market regulations to reap economic growth benefits." @default.
• W4382400190 created "2023-06-29" @default.
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• W4382400190 date "2023-06-28" @default.
• W4382400190 modified "2023-09-26" @default.
• W4382400190 title "Labour Market Flexibility and Economic Growth in Africa" @default.
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• W4382400190 doi "https://doi.org/10.18267/j.pep.828" @default.
• W4382400190 hasPublicationYear "2023" @default.
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