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Institutions and service employment: a panel study for OECD countries

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  • Messina, Julián

Abstract

We live in a service economy, but the extent of development of service employment differs across developed countries. This paper assesses the role of structural factors and institutions in explaining the common patterns and main di?erences in the recent expansion of service employment in OECD countries. It finds that GDP per capita, the size of the government sector and the extent of urbanization are positively associated with the service employment share. However, the evidence suggests that laws and institutions such as product market regulations, unions and more coordinated wage-setting systems are hampering the expansion of service employment. JEL Classification: J21, L80, L51

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Bibliographic Info

Paper provided by European Central Bank in its series Working Paper Series with number 0320.

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Date of creation: Mar 2004
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Handle: RePEc:ecb:ecbwps:20040320

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Keywords: Employment; Product and Labor Market Regulations; Service Industries; Structural change;

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References

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  1. Bertola, Giuseppe & Blau, Francine D & Kahn, Lawrence, 2001. "Comparative Analysis of Labour Market Outcomes: Lessons for the US from International Long-Run Evidence," CEPR Discussion Papers 3023, C.E.P.R. Discussion Papers.
  2. Bertrand, Marianne & Kramarz, Francis, 2001. "Does Entry Regulation Hinder Job Creation? Evidence from the French Retail Industry," CEPR Discussion Papers 3039, C.E.P.R. Discussion Papers.
  3. Juan F. Jimeno & Diego Rodríguez-Palenzuela, 2003. "Youth Unemployment in the OECD: Demographic Shifts, Labour Market Institutions and Macroeconomic Shocks," Economics Working Papers 019, European Network of Economic Policy Research Institutes.
  4. Olivier Blanchard & Justin Wolfers, 1999. "The Role of Shocks and Institutions in the Rise of European Unemployment: The Aggregate Evidence," NBER Working Papers 7282, National Bureau of Economic Research, Inc.
  5. Robert J. Barro & Jong-Wha Lee, 2000. "International Data on Educational Attainment Updates and Implications," NBER Working Papers 7911, National Bureau of Economic Research, Inc.
  6. Baumol, William J, 1972. "Macroeconomics of Unbalanced Growth: Reply," American Economic Review, American Economic Association, vol. 62(1), pages 150, March.
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Cited by:
  1. Raquel Fonseca & Lise Patureau & Thepthida Sopraseuth, 2008. "Business cycle comovement and labor market institutions: An empirical investigation," THEMA Working Papers 2008-05, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
  2. D'Agostino, Antonello & Serafini, Roberta & Ward-Warmedinger, Melanie E., 2006. "Sectoral Explanations of Employment in Europe: The Role of Services," IZA Discussion Papers 2257, Institute for the Study of Labor (IZA).
  3. 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.
  4. Berger, Helge & Danninger, Stephan, 2006. "The employment effects of labor and product markets deregulations and their implications for structural reform," Discussion Papers 2006/10, Free University Berlin, School of Business & Economics.
  5. Helge Berger & Stephan Danninger, 2005. "Labor and Product Market Deregulation," IMF Working Papers 05/227, International Monetary Fund.
  6. Gebhard Flaig & Horst Rottmann, 2007. "Labour Market Institutions and the Employment Intensity of Output Growth. An International Comparison," CESifo Working Paper Series 2175, CESifo Group Munich.
  7. Gebhard Flaig & Horst Rottmann, 2005. "Labour Market Institutions and Employment Thresholds. An International Comparison," Ifo Working Paper Series Ifo Working Papers No.15, Ifo Institute for Economic Research at the University of Munich.
  8. Klaus Abberger & Gebhard Flaig & Wolfgang Nierhaus, 2007. "ifo Konjunkturumfragen und Konjunkturanalyse : ausgewählte methodische Aufsätze aus dem ifo Schnelldienst," ifo Forschungsberichte, Ifo Institute for Economic Research at the University of Munich, number 33, 8.
  9. repec:nbr:nberwo:12799 is not listed on IDEAS
  10. Gebhard Flaig & Horst Rottmann, 2004. "Erhöht der Kündigungsschutz die Beschäftigungsschwelle?," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 57(17), pages 13-17, 09.

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