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Sectoral explanations of employment in Europe: the role of services

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  • D'Agostino, Antonello

    (Central Bank and Financial Services Authority of Ireland)

  • Serafini, Roberta

    (European Central Bank and ISAE)

  • Ward, Melanie

    (European Central Bank and IZA)

Abstract

This paper investigates the determinants of the service sector employment share in the EU-15, for the aggregate service sector, four sub-sectors and twelve service sector branches. Recently, both Europe and the US have experienced an increase in the share of service-related jobs in total employment. Although converging in all European countries, a significant gap in the share of service jobs in Europe relative to the US persists. Understanding the main factors behind this gap is key to achieving higher employment levels in Europe. This paper focuses on the role of barriers in the EU-15 which may have hindered its ability to absorb labour supply and therefore to adjust efficiently to the sectoral reallocation of labour. We find that a crucial role in this process has been played by the institutional framework affecting flexibility in the labour market and by the mismatch between workers' skills and job vacancies.

Suggested Citation

  • D'Agostino, Antonello & Serafini, Roberta & Ward, Melanie, 2006. "Sectoral explanations of employment in Europe: the role of services," Research Technical Papers 8/RT/06, Central Bank of Ireland.
  • Handle: RePEc:cbi:wpaper:8/rt/06
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Metka Stare & Andreja Jaklič, 2011. "Towards Explaining Growth of Private and Public services in the Emerging Market Economies," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 13(30), pages 581-598, June.
    2. Ronald Bachmann & Michael C. Burda, 2010. "Sectoral Transformation, Turbulence and Labor Market Dynamics in Germany," German Economic Review, Verein für Socialpolitik, vol. 11, pages 37-59, February.
    3. Per Skedinger, 2010. "Employment Protection Legislation," Books, Edward Elgar Publishing, number 13686.
    4. Ad van Riet & Moreno Roma, 2006. "Competition, productivity and prices in the euro area services sector," Occasional Paper Series 44, European Central Bank.
    5. Luigi Bonatti & Giulia Felice, 2010. "Trade And Growth In A Two-Country Model With Home Production And Uneven Technological Spillovers," Manchester School, University of Manchester, vol. 78(5), pages 484-509, September.
    6. DonHee Lee & Dong Lee, 2013. "A comparative study of quality awards: evolving criteria and research," Service Business, Springer;Pan-Pacific Business Association, vol. 7(3), pages 347-362, September.
    7. Luigi Bonatti, 2007. "Home production, labor taxation and trade account," Department of Economics Working Papers 0715, Department of Economics, University of Trento, Italia.
    8. Catherine Lam & Frank Walter & Kan Ouyang, 2014. "Display rule perceptions and job performance in a Chinese retail firm: The moderating role of employees’ affect at work," Asia Pacific Journal of Management, Springer, vol. 31(2), pages 575-597, June.
    9. Andreas Bergh, 2014. "Sweden and the Revival of the Capitalist Welfare State," Books, Edward Elgar Publishing, number 15717.
    10. Bakhtier Safarov, 2011. "Challenges And Development Guidelines Of The Service Industry In Uzbekistan," Perspectives of Innovation in Economics and Business (PIEB), Prague Development Center, vol. 7(1), pages 43-44, January.

    More about this item

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L80 - Industrial Organization - - Industry Studies: Services - - - General

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