The objective of this paper is to explain the reasons behind the dynamics of labor productivity (LP) growth during a process of institutional and structural change. We show - by means of a theoretical discussion and an empirical analysis, conducted on a sample of 25 European countries for the period 1995-2016 - that four main channels contribute to explaining the evolution of LP. First, the speed of investment, which incorporates innovation and favors an increase of LP growth; second, the speed of Research and Development (R&D), which allows for the creation of new ideas and shows the "dynamism of a society", having positive effects on LP; third, the deregulation of labor markets and the increase of temporary employment, both of which encourage labor-intensive strategies by firms, with low value-added and low productivity gains; fourth, the direction of structural change, which can take place toward services industries affected by "Baumol's disease".
Pariboni, R., & Tridico, P. (2019). Structural change, institutions and the dynamics of labor productivity in Europe. JOURNAL OF EVOLUTIONARY ECONOMICS, 30(5), 1275-1300 [10.1007/s00191-019-00641-y].
Titolo: | Structural change, institutions and the dynamics of labor productivity in Europe | |
Autori: | TRIDICO, Pasquale (Corresponding) | |
Data di pubblicazione: | 2019 | |
Rivista: | ||
Citazione: | Pariboni, R., & Tridico, P. (2019). Structural change, institutions and the dynamics of labor productivity in Europe. JOURNAL OF EVOLUTIONARY ECONOMICS, 30(5), 1275-1300 [10.1007/s00191-019-00641-y]. | |
Handle: | http://hdl.handle.net/11590/384935 | |
Appare nelle tipologie: | 1.1 Articolo in rivista |