Sector decomposition of labour productivity growth in the European Union
DOI:
https://doi.org/10.18778/1429-3730.34.03Keywords:
konwergencja gospodarcza, wydajność pracy, convergence, labour productivityAbstract
In the paper the results of the shift-share decomposition analysis of labour productivity growth in the European Union in 19970–2007 were presented. Making use of data from the EU-KLEMS and the GGDC Productivity Database, the role of productivity growth in 5 major economic sectors and of the employment shifts between these sectors for total productivity growth were analysed. Then, using the nonparametric method (LOWESS) dominant development patterns were distinguished. It was demonstrated that nearly 90% of productivity growth in the sample can be accounted to within effects and about 11% – to changes in employment structure. Employment shifts had on average a direction into more productive sectors, but also to less dynamic ones. Industry and services had the biggest contribution to productivity growth, on all development levels. Productivity dynamics is the highest on the lower development level of the economy. With development, it is becoming more and more difficult to enhance productivity – either by within effects or by changes in employment structure.
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Funding data
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Narodowe Centrum Nauki
Grant numbers DEC-2011/01/N/HS4/03077
