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Is there a trade-off between employment and labour productivity in new EU member states?

  • Emilia Herman

    ()

    („Petru Maior” University,Tg. Mures)

  • Maria-Ana Georgescu

    ()

    („Petru Maior” University,Tg. Mures)

Taking into consideration the EU objective set by the Europe 2020 Strategy, i.e. to become a smart, sustainable and inclusive economy, which at the same time implies a growth in employment and labour productivity, our main research question is if there is a trade-off between employment and labour productivity, in a panel of twelve new EU member states, in the 2000-2010 period. The results of our study show that between 2000 and 2010, there was a trade-off between growth in employment and growth in labour productivity, fact which requires taking some measures, in these countries, which should allow the creation of new jobs but the increase in labour productivity as well.

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Article provided by Department of International Business and Economics from the Academy of Economic Studies Bucharest in its journal Romanian Economic Journal.

Volume (Year): 15 (2012)
Issue (Month): 45 (December)
Pages: 303-318

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Handle: RePEc:rej:journl:v:15:y:2012:i:46:p:303-318
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  1. Belorgey, Nicolas & Lecat, Remy & Maury, Tristan-Pierre, 2006. "Determinants of productivity per employee: An empirical estimation using panel data," Economics Letters, Elsevier, vol. 91(2), pages 153-157, May.
  2. Renaud Bourlès & Gilbert Cette & Anastasia Cozarenco, 2012. "Employment and Productivity: Disentangling Employment Structure and Qualification Effects," International Productivity Monitor, Centre for the Study of Living Standards, vol. 23, pages 44-54, Spring.
  3. Bourlès, R. & Cette, G., 2005. "A comparison of Structural Productivity Levels in the Major Industrialised Countries," Working papers 133, Banque de France.
  4. Albert van der Horst & Hugo Rojas-Romagosa & Leon Bettendorf, 2009. "Does employment affect productivity?," CPB Discussion Paper 119, CPB Netherlands Bureau for Economic Policy Analysis.
  5. Forbes, Matthew & Barker, Andrew & Turner, Stewart, 2010. "The Effects of Education and Health on Wages and Productivity," Staff Working Papers 101, Productivity Commission, Government of Australia.
  6. Renaud Bourlès & Gilbert Cette, 2005. "Une comparaison des niveaux de productivité structurels des grands pays industrialisés," Revue économique de l'OCDE, OECD Publishing, vol. 2005(2), pages 83-117.
  7. Gilbert Cette & Samuel Chang & Maty Konte, 2011. "The decreasing returns on working time: an empirical analysis on panel country data," Applied Economics Letters, Taylor & Francis Journals, vol. 18(17), pages 1677-1682.
  8. Paul Beaudry & Fabrice Collard, 2002. "Why has the Employment-Productivity Tradeoff among Industrialized Countries been so strong?," NBER Working Papers 8754, National Bureau of Economic Research, Inc.
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