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

Author

Listed:
  • Emilia Herman

    („Petru Maior” University,Tg. Mures)

  • Maria-Ana Georgescu

    („Petru Maior” University,Tg. Mures)

Abstract

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.

Suggested Citation

  • Emilia Herman & Maria-Ana Georgescu, 2012. "Is there a trade-off between employment and labour productivity in new EU member states?," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 15(45), pages 303-318, December.
    • Handle: RePEc:rej:journl:v:15:y:2012:i:46:p:303-318
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    References listed on IDEAS

    as
    1. 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.
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    3. 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.
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    7. Renaud Bourlès & Gilbert Cette, 2006. "A comparison of structural productivity levels in the major industrialised countries," OECD Economic Studies, OECD Publishing, vol. 2005(2), pages 75-108.
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    9. 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.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    economic development; economic growth; employment; labour productivity; correlation; European Union;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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