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Employment and Productivity in the European Union and Comparison with the USA, 1985-2005: Analysis of France, Germany, Italy, Spain and the United Kingdom

Author

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  • Guisan, M.C.
  • Cancelo, M.T.

Abstract

The main emphasis of labour policies in several EU countries seem to have been addressed during the period 1985-2005 to contain the increases of real wages, under the misleading belief that lower wages could lead the policies to get higher employment rates. We show that the main policies to increase employment rates are not opposite to the increase of wages, and even the best labour policies, addressed to increase simultaneously labour productivity and employment, usually get both goals, as to say an increase in real wages and in the employment rate. We also analyse the main econometric approaches to the explanation of the evolution of these variables and present a comparison of their evolution in France, Germany, Italy, Spain and the United Kingdom.

Suggested Citation

  • Guisan, M.C. & Cancelo, M.T., 2006. "Employment and Productivity in the European Union and Comparison with the USA, 1985-2005: Analysis of France, Germany, Italy, Spain and the United Kingdom," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 6(3), pages 55-63.
  • Handle: RePEc:eaa:aeinde:v:6:y:2006:i:3_4
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    File URL: http://www.usc.es/economet/reviews/aeid634.pdf
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. 13. Comments on Krugman´s views of Spanish economy: Salaries are not to blame and should not diminish. Productivity should increase.
      by MCG Blogs de EconomĂ­a in Euro-American Association: World Development on 2010-03-02 09:40:00

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    Cited by:

    1. Guisan, M.C., 2010. "Employment in Private and Public Services: A Comparative Analysis of Commercial, Business and Social Services in Spain, France, Italy, Germany, UK and USA," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 10(1), pages 71-81.
    2. GUISAN, Maria-Carmen & CANCELO, Maria-Teresa, 2014. "Industry, Productivity And Development In 96 European Regions, 2005-2010," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 14(1).
    3. Marga Peeters & Ard den Reijer, 2014. "Coordination versus flexibility in wage formation: a focus on the nominal wage impact of productivity in Germany, Greece, Ireland, Portugal, Spain and the United States," Applied Economics, Taylor & Francis Journals, vol. 46(7), pages 698-714, March.

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