Growth and Employment in the Dominican Republic

Growth and Employment in the Dominican Republic
Author: Mr.Umidjon Abdullaev
Publisher: International Monetary Fund
Total Pages: 25
Release: 2013-02-08
Genre: Business & Economics
ISBN: 1475514573

The Dominican Republic has posted high rates of output and productivity growth, but labor market indicators have remained weak during the past 20 years. This paper documents these trends, showing that the rapid productivity growth originates in a few sectors, while the bulk of job creation is concentrated elsewhere. The speed of job creation has not been enough to raise employment rates, and lackluster real earnings along with still-rampant labor market informality suggest that most of the new jobs are of low quality. Low real wages and low labor force participation suggest the need of raising market wages above fallback incomes to attract individuals to the labor force. For that, measures to improve education and reduce product market distortions would be helpful.

When Growth Is Not Enough

When Growth Is Not Enough
Author: Francisco Galrao Carneiro
Publisher: World Bank Publications
Total Pages: 185
Release: 2017-05-31
Genre: Business & Economics
ISBN: 1464810370

The Dominican Republic stands out as a fast growing economy that has not been able to generate a commensurate reduction in poverty. Three reasons have been raised before to explain this conundrum: (i) a labor market that does not translate productivity gains into salary increases; (ii) a domestic economy with weak inter-sectoral linkages; (iii) and a public sector that does not spend enough nor particularly well to reduce poverty. In addition, the country remains largely exposed to natural disasters and exogenous shocks that, if not mitigated properly, may affect the sustainability of growth in the medium and longer terms. This book assembles a collection of empirical analyses that explore three complementary hypotheses that could help understand why the Dominican Republic continues, to this date, experiencing high economic growth rates with limited poverty reduction. The first hypothesis is concerned with testing whether the observed pattern of fast economic growth cum persistent poverty in the DR is partly driven by a poverty methodology that does not account for price variation that affects distinctly the consumption patterns of low-income and better-off households. If that hypothesis holds, the DR may face a situation in which household income for households at the bottom of the distribution is underestimated. The second hypothesis tests whether the pattern of specialization in the DR might be such that it does not favor unskilled labor. If that hypothesis holds, then returns to capital are probably much higher than returns to labor which would be an indication that the DR has had a comparative advantage in products that are capital intensive instead of labor-intensive. The third hypothesis investigates whether poverty and wage inequality in the DR are affected not only by immigration but also by emigration. The contribution of the volume, therefore, lies in precisely offering a more careful exploration of specific issues around common explanations for the shortcomings of the DR in reducing poverty on a faster basis.

Jobless Growth in the Dominican Republic

Jobless Growth in the Dominican Republic
Author: Christian Krohn-Hansen
Publisher: Stanford University Press
Total Pages: 301
Release: 2022-05-03
Genre: Business & Economics
ISBN: 1503631575

The Dominican Republic has posted impressive economic growth rates over the past thirty years. Despite this, the generation of new, good jobs has been remarkably weak. How have ordinary and poor Dominicans worked and lived in the shadow of the country's conspicuous growth rates? This book considers this question through an ethnographic exploration of the popular economy in the Dominican capital. Focusing on the city's precarious small businesses, including furniture manufacturers, food stalls, street-corner stores, and savings and credit cooperatives, Krohn-Hansen shows how people make a living, tackle market shifts, and the factors that characterize their relationship to the state and pervasive corruption. Empirically grounded, this book examines the condition of the urban masses in Santo Domingo, offering an original and captivating contribution to the scholarship on popular economic practices, urban changes, and today's Latin America and the Caribbean. This will be essential reading for scholars and policy makers.

Potential Output Growth Estimates for Central America and the Dominican Republic

Potential Output Growth Estimates for Central America and the Dominican Republic
Author: Mr.Roberto Garcia-Saltos
Publisher: International Monetary Fund
Total Pages: 36
Release: 2017-01-18
Genre: Business & Economics
ISBN: 1475567618

This paper presents estimates of potential output for all Central American economies. Our findings are that potential output growth has declined in recent years in most economies of Central America. Lower capital accumulation and TFP growth are accounting for most of this decline. Apart from Costa Rica, there are no indications of significant economic slack in 2015 in Central America. Looking forward, potential growth in most Central American economies is expected to continue at an average of 4 percent in the medium-term due to structural constraints to capital and employment growth, and low TFP growth. Increasing potential growth, thus, should be a policy priority and structural reforms must be directed at improving business conditions, product and labor markets, and enhancing the capacity for innovation.

Peasants In Distress

Peasants In Distress
Author: Rosemary Vargas-Lundius
Publisher: Routledge
Total Pages: 388
Release: 2019-09-05
Genre: Political Science
ISBN: 1000242935

A study of economic development in the Dominican Republic, this book argues that rigid economic structures and poor use of labour resources have created conditions that undermine the demand for labour, and maintain perpetual poverty and unemployment. Viewing the problem from a broad perspective, the author analyzes labour and credit markets, offers empirical data on agricultural yields, and examines such socioeconomic issues as the living conditions among the peasantry, the demand for immigrant Haitian labour, and migration from rural to urban areas.

Structural Change and Growth in Central America and the Dominican Republic

Structural Change and Growth in Central America and the Dominican Republic
Author: Hugo E. Beteta
Publisher: UN
Total Pages: 384
Release: 2014
Genre: Business & Economics
ISBN:

This publication looks at changes that have occurred with the production structure, trade and society in Central America and the Dominican Republic, and how they have influenced the countries' growth trajectories. One of the conclusions it reaches is that the subregion overall has enjoyed faster economic growth than the rest of Latin America over the two decades examined, 1990-2011, which has helped to raise incomes and living standards. Yet this progress falls far short of what is needed, given the high levels of poverty and indigence and the glaring inequalities suffered by much of the population in Central America and the Dominican Republic.

Paving the Way to Sustained Growth and Prosperity in Central America, Panama, and the Dominican Republic

Paving the Way to Sustained Growth and Prosperity in Central America, Panama, and the Dominican Republic
Author: Ms.Kimberly Beaton
Publisher: International Monetary Fund
Total Pages: 308
Release: 2019-09-13
Genre: Business & Economics
ISBN: 1484353846

Abstract: Accelerating economic growth in Central America, Panama and the Dominican Republic (CAPDR) remains an elusive task. While the region performed relatively well in the post-global financial crisis period, over the last five years obstacles to growth have become more evident and new challenges have emerged. In response, the region has strengthened macro-financial frameworks but more progress will be required to pave the way to sustained growth and prosperity. This book considers the structural factors underlying the region’s growth outlook and assesses its macroeconomic and financial challenges to help shape the policy agenda going forward. The book first identifies the structural determinants of growth in the region related to: capital formation; employment; demographic factors, including immigration; productivity; and violence. It then highlights the importance of creating fiscal space through the design and implementation of fiscal rules and mechanisms to increase accountability (better quality of public spending, adequate policies to reduce income inequality and sustainable retirement plans). Finally, it presents recent evidence on the importance of a supportive financial sector for growth (including through financial inclusion and development).

Do Labor Markets Limit the Inclusiveness of Growth in the Dominican Republic?

Do Labor Markets Limit the Inclusiveness of Growth in the Dominican Republic?
Author: Weltbank
Publisher:
Total Pages:
Release: 2017
Genre:
ISBN:

The strong economic growth enjoyed by the Dominican Republic following its 2003 domestic crisis was not matched by similarly substantial progress in poverty reduction. While labor productivity grew by an estimated 39 percent between 2000 and 2013, real wages fell with the crisis in 2003/04, and, in 2013, remained below their pre-crisis level. This report presents an assessment of factors related to the functioning of the labor markets that constrained more inclusive growth in the Dominican Republic. It explores several hypotheses related to labor supply factors, job creation, and global trends in returns to labor, as well as issues with statistical measurements that contribute to explain the weak relationship observed between growth and poverty reduction. The analysis finds that growth appears to have been driven by productivity increases rather than by increases in labor inputs. At the same time, low-skilled workers became increasingly concentrated in low-quality jobs and in sectors that saw low productivity growth, a trend enhanced by the loss of manufacturing jobs since 2000. Low rates of labor force participation, particularly among the poor, further limited the ability of households to benefit from growth.