WP1 REPORT - Employability of MRAs in the SIRIUS Country
Athena Belegri-Roboli, Panayotis G.Michaelides, Konstantinos N. Konstantakis, Maria Markaki, Theocharis Marinos - National Technical University of Athens
The first part of this report aims at identifying the SIRIUS economies and the sectors of economic activity that could be considered as being “labour absorbing”, using aggregate national data for the time period 2008-2016. Econometrically, in order to take into consideration the complex labour dynamics among the various SIRIUS economies as well as the potential spillover effects among the various countries, this report employed a GVAR model for all the economies. In this context, using the GVAR framework, the dynamic interlinkages and the potential spillover effects among the various SIRIUS economies will be uncovered. The implicit assumption, in this framework, is that there is labour mobility among the various economies. Therefore, the results of the GVAR estimation pinpointed the labour absorbing economies in the dataset. At the second step, this report analysed the labour absorbing sectors in the SIRIUS economies. A labour absorbing sector, identified in the second step, implies that this specific sector could attract, independently, more labour from the rest of the sectors in order to increase its production.
The estimation of the sectoral VAR/VEC models in the second step was conducted using sectoral data for the economies of Switzerland (CH), the Czech Republic (CZ), Finland (FI) and the United Kingdom (UK), Greece (GR), Denmark (DK) and Italy (IT), that cover the four main sectors of economic activity, i.e. Primary sector (A, Nace Rev.2), Secondary sector (B-F, Nace Rev.2), Manufacturing sector (C, Nace Rev.2), and tertiary sector (G-U, Nace Rev.2), that capture each sector’s output (Y) and Labour (L), were employed.