Advanced Search
MyIDEAS: Login to save this paper or follow this series

Labour cost trends and international competitiveness in Europe

Contents:

Author Info

  • Alexander Herzog-Stein
  • Heike Joebges
  • Ulrike Stein
  • Rudolf Zwiener

Abstract

Based on data from Eurostat the Macroeconomic Policy Institute (IMK) regularly analyses the development of labour costs and unit labour costs in Europe. This report presents labour cost trends in the private sector, and disaggregated for private services and manufacturing industry, for a selection of European countries, the Euro Area and the European Union. Additionally, results of a new study investigating the extent of the labour-cost relief for industrial production in Germany associated with the use of intermediate inputs from the service sector are presented. Furthermore, labour cost trends in public services are presented. Next, the development of unit labour costs in Europe and more specifically the relationship between international price competitiveness, export prices, and unit labour costs are investigated.In 2012 hourly labour cost in the German private sector averaged 31.0 euro. Despite a recent normalisation in labour-cost trends in Germany, and an annual rate of change of 2.8 per cent, well above the European average, the German economy is in eighth place in the ranking of EU countries, one place down from the previous year. Hourly labour costs in private services are one fifth lower than in manufacturing industry; in no other European country does the service sector lag manufacturing to such an extent. Due to the use of cheaper intermediate inputs from the service sector, labour costs in the German industry are reduced by eight to ten per. Overall, the picture of a highly competitive German economy is confirmed.In recent years as a consequence of dramatic unit-labour-cost developments the so called European crisis countries regained their price competitiveness. However, German demand for imports remains relatively modest and hence is still a handicap for the ongoing economic adjustment processes in these countries. Therefore wages in Germany need to increase by more than 3 % per annum for an extended period.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.boeckler.de/pdf/p_imk_report_88e_2013.pdf
Download Restriction: no

Bibliographic Info

Paper provided by IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute in its series IMK Report with number 88e-2013.

as in new window
Length: 23 pages
Date of creation: 2013
Date of revision:
Handle: RePEc:imk:report:88e-2013

Contact details of provider:
Postal: Hans-Böckler-Straße 39, 40476 Düsseldorf
Phone: +49 211 7778 234
Fax: +49 211 7778 4234
Email:
Web page: http://www.imk-boeckler.de
More information through EDIRC

Related research

Keywords:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
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.:
as in new window
  1. Udo Ludwig & Hans-Ulrich Brautzsch, 2010. "Arbeitskosteneffekte des Vorleistungsbezugs der Industrie an Dienstleistungen in Deutschland im Vergleich mit Frankreich und den Niederlanden," IMK Studies 4-2010, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
  2. Ulrike Stein & Sabine Stephan & Rudolf Zwiener, 2012. "Zu schwache deutsche Arbeitskostenentwicklung belastet Europäische Währungsunion und soziale Sicherung," IMK Report 77-2012, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
  3. Udo Ludwig & Hans-Ulrich Brautzsch, 2008. "Globalisierung und Beschäftigung - eine Untersuchung mit der Input-Output-Methode," IMK Studies 01-2008, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
  4. Paul Krugman, 1986. "Pricing to Market when the Exchange Rate Changes," NBER Working Papers 1926, National Bureau of Economic Research, Inc.
  5. Udo Ludwig & Hans-Ulrich Brautzsch & Brigitte Loose, 2011. "Dienstleistungsverbund stärkt Bedeutung der Industrie," Wirtschaftsdienst, Springer, vol. 91(9), pages 648-650, September.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:imk:report:88e-2013. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sabine Nemitz).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.