sharing in governance of extractive industries
More transparency around the data and assumptions used to support employment estimates (direct, indirect and induced) for extractive industry investments is needed. Employment benefits are one of the primary concerns of local communities and when expectations are not met, this can result in disappointment and friction. This handbook aims to contribute to the understanding of how employment multipliers are calculated using the input-output (IO) and computable general equilibrium (CGE) models. It explains the advantages, disadvantages, necessary inputs, and results associated with each model. A step-by-step guide on how a simple IO model can be replicated to estimate indirect employment figures is provided with the accompanying excel file. Both files that can be downloaded here.
This document is not meant to substitute more advanced employment impact assessments. Project specific studies should continue to be commissioned. Instead, it aims to help third parties engage with mining companies and/or governments regarding employment claims.
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