Has the tradeoff between productivity gains and job growth disappeared?
AbstractPolicymakers' efforts to boost trend output growth may be hampered by the presence of a tradeoff between productivity gains and job creation. This paper presents empirical evidence that the negative relationship between productivity growth and employment growth that prevailed in the 1960s and 1970s has disappeared since then. This finding is robust to using alternative measures and including other explanatory variables. The improved tradeoff may be good news for policymakers who aim at raising the 'speed limit' of the economy.
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Bibliographic InfoPaper provided by Netherlands Central Bank, Monetary and Economic Policy Department in its series MEB Series (discontinued) with number 2003-12.
Date of creation: Oct 2003
Date of revision:
productivity; employment; cross-country analysis;
Find related papers by JEL classification:
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
- O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-10-28 (All new papers)
- NEP-DEV-2003-10-28 (Development)
- NEP-EFF-2003-11-23 (Efficiency & Productivity)
- NEP-INO-2003-10-28 (Innovation)
- NEP-LAB-2003-10-28 (Labour Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Giuseppe Nicoletti & Stefano Scarpetta & Olivier Boylaud, 2000. "Summary Indicators of Product Market Regulation with an Extension to Employment Protection Legislation," OECD Economics Department Working Papers 226, OECD Publishing.
- Henri L.F. de Groot & Paul J.G. Tang & Richard Nahuis, 2004.
"Is the American Model Miss World? Choosing between the Anglo-Saxon model and a European-style alternative,"
04-26, Utrecht School of Economics.
- Henri de Groot & Richard Nahuis & Paul Tang, 2004. "Is the American model Miss World? Choosing between the Anglo-Saxon model and a European-style alternative," CPB Discussion Paper 40, CPB Netherlands Bureau for Economic Policy Analysis.
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