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Sectoral explanations of employment in Europe: the role of services

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  • D'Agostino, Antonello

    (Central Bank and Financial Services Authority of Ireland)

  • Serafini, Roberta

    (European Central Bank and ISAE)

  • Ward, Melanie

    (European Central Bank and IZA)

Abstract

This paper investigates the determinants of the service sector employment share in the EU-15, for the aggregate service sector, four sub-sectors and twelve service sector branches. Recently, both Europe and the US have experienced an increase in the share of service-related jobs in total employment. Although converging in all European countries, a significant gap in the share of service jobs in Europe relative to the US persists. Understanding the main factors behind this gap is key to achieving higher employment levels in Europe. This paper focuses on the role of barriers in the EU-15 which may have hindered its ability to absorb labour supply and therefore to adjust efficiently to the sectoral reallocation of labour. We find that a crucial role in this process has been played by the institutional framework affecting flexibility in the labour market and by the mismatch between workers' skills and job vacancies.

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Bibliographic Info

Paper provided by Central Bank of Ireland in its series Research Technical Papers with number 8/RT/06.

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Length: 52 pages
Date of creation: Jul 2006
Date of revision:
Handle: RePEc:cbi:wpaper:8/rt/06

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Cited by:
  1. Metka Stare & Andreja Jaklič, 2011. "Towards Explaining Growth of Private and Public services in the Emerging Market Economies," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 13(30), pages 581-598, June.
  2. Ronald Bachmann & Michael C. Burda, 2007. "Sectoral Transformation, Turbulence, and Labour Market Dynamics in Germany," SFB 649 Discussion Papers SFB649DP2007-008, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
  3. Luigi Bonatti, 2007. "Home production, labor taxation and trade account," Department of Economics Working Papers 0715, Department of Economics, University of Trento, Italia.
  4. Ad van Riet & Moreno Roma, 2006. "Competition, productivity and prices in the euro area services sector," Occasional Paper Series 44, European Central Bank.

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