IDEAS home Printed from https://ideas.repec.org/a/eaa/aeinde/v17y2017i2_3.html
   My bibliography  Save this article

Employment By Sector, Productivity And Wages In 5 European Countries, 1965-2015: Fifty Years Of Evolution In Germany, Spain, France, Italy And Uk

Author

Listed:
  • GUISAN, Maria-Carmen
  • EXPOSITO, Pilar

Abstract

We analyze the evolution of employment by sector, production and wages in 5 European countries for a period of fifty years (1965-2015). We have estimated the elasticities Employment/Output with a model in levels (by LS and GLS) and a mixed dynamic model (by LS). The elasticity estimated in the model in levels by GLS and in the mixed dynamic model by LS show values around 0.37 for Agriculture, 0.21 for Industry, around 0.41 for Building and higher than 0.70 for Services. The main effect of industrial development has been the creation of millions of employments on Services, as well as the increase on labour productivity and average real wage of these economies. The results are a strong support to Kaldor´s views. Regarding wages the evolution has been positive, but less than expected by workers due to the effects of some economic policies, without enough support to industry. There was a diminution of the ratio Wage/Productivity from nearly 0.70 in year 1975 to approximately 0.60 in year 2012. We strongly recommend economic changes in European industrial policies addressed to foster economic development and increasing levels of real wages. The comparison of average real wages of these European countries with the United States show a gap, favourable to the U.S. if the comparison is made with Exchange Rates and that both average values are very alike if the comparison is made with Purchasing Power Parities (PPPs).

Suggested Citation

  • GUISAN, Maria-Carmen & EXPOSITO, Pilar, 2017. "Employment By Sector, Productivity And Wages In 5 European Countries, 1965-2015: Fifty Years Of Evolution In Germany, Spain, France, Italy And Uk," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 17(2), pages 33-46.
  • Handle: RePEc:eaa:aeinde:v:17:y:2017:i:2_3
    as

    Download full text from publisher

    File URL: http://www.usc.es/~economet/reviews/aeid1723.pdf
    Download Restriction: No.

    More about this item

    Keywords

    Employment by sector; Econometric Models; Estimation of Elasticity Labor/Output; Kaldor; Productivity; Wages; Europe; Germany; Spain; France; Italy; UK; European Economic Policy; Industry.;

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • L7 - Industrial Organization - - Industry Studies: Primary Products and Construction
    • L8 - Industrial Organization - - Industry Studies: Services
    • N34 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Europe: 1913-
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eaa:aeinde:v:17:y:2017:i:2_3. 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: (M. Carmen Guisan). General contact details of provider: http://www.usc.es/economet/eaa.htm .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.