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The Employment Effects of the ‘New Economy’. A Comparison of the European Union and the United States

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  • van Ark, Bart
  • Inklaar, Robert
  • McGuckin, Robert H.
  • Timmer, Marcel P.

Abstract

This paper provides an analysis of the trends in labour productivity and employment growth at industry level in the European Union and the United States during the 1990s. We analyse relationships for groups of industries, i.e. industries that produce ICT products and services, those that invest strongly in ICT, and those that make less intensive use of ICT. The main findings are that the inverse relationship between employment and productivity growth has been much more prominent in manufacturing industries than in services industries. Secondly, during the 1990s, this relationship has turned positive in many industries, in particular in ICT-producing industries and in ICT-using industries in the service sector. Finally, the employment-reducing effects of productivity growth have remained considerably stronger in Europe than in the US.

Suggested Citation

  • van Ark, Bart & Inklaar, Robert & McGuckin, Robert H. & Timmer, Marcel P., 2003. "The Employment Effects of the ‘New Economy’. A Comparison of the European Union and the United States," National Institute Economic Review, National Institute of Economic and Social Research, vol. 184, pages 86-98, April.
    • Handle: RePEc:cup:nierev:v:184:y:2003:i::p:86-98_10
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    References listed on IDEAS

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    1. Giuseppe Nicoletti & Andrea Bassanini & Ekkehard Ernst & Sébastien Jean & Paulo Santiago & Paul Swaim, 2001. "Product and Labour Markets Interactions in OECD Countries," OECD Economics Department Working Papers 312, OECD Publishing.
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    1. repec:dgr:rugggd:200469 is not listed on IDEAS
    2. Garcia-Murillo, Martha & MacInnes, Ian & Bauer, Johannes, 2015. "Effects of ICTs on employment: a conceptual framework," 26th European Regional ITS Conference, Madrid 2015 127140, International Telecommunications Society (ITS).
    3. Bart van Ark & Marcin Piatkowski, 2004. "Productivity, innovation and ICT in Old and New Europe," International Economics and Economic Policy, Springer, vol. 1(2), pages 215-246, January.
    4. Nicola MATTEUCCI & Alessandro STERLACCHINI, 2003. "ICT and Employment Growth in Italian Industries," Working Papers 193, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    5. Marcel Canoy & Peter Smith, 2008. "Services and the Single Market," Journal of Industry, Competition and Trade, Springer, vol. 8(3), pages 319-347, December.

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    More about this item

    JEL classification:

    • N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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