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Institutions and service employment: a panel study for OECD countries

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  • Messina, Julián

Abstract

We live in a service economy, but the extent of development of service employment differs across developed countries. This paper assesses the role of structural factors and institutions in explaining the common patterns and main differences in the recent expansion of service employment in OECD countries. It finds that GDP per capita, the size of the government sector and the extent of urbanization are positively associated with the service employment share. However, the evidence suggests that laws and institutions such as product market regulations, unions and more coordinated wage-setting systems are hampering the expansion of service employment. JEL Classification: J21, L80, L51

Suggested Citation

  • Messina, Julián, 2004. "Institutions and service employment: a panel study for OECD countries," Working Paper Series 320, European Central Bank.
  • Handle: RePEc:ecb:ecbwps:2004320
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    References listed on IDEAS

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    Cited by:

    1. Helge Berger & Stephan Danninger, 2005. "Labor and Product Market Deregulation; Partial, Sequential, or Simultaneous Reform?," IMF Working Papers 05/227, International Monetary Fund.
    2. Desireé van Welsum & Xavier Reif, 2009. "We Can Work It Out: The Globalization of ICT-Enabled Services," NBER Chapters,in: International Trade in Services and Intangibles in the Era of Globalization, pages 289-325 National Bureau of Economic Research, Inc.
    3. Klaus Abberger & Gebhard Flaig & Wolfgang Nierhaus, 2007. "ifo Konjunkturumfragen und Konjunkturanalyse : ausgewählte methodische Aufsätze aus dem ifo Schnelldienst," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 33.
    4. Feldmann, Horst, 2009. "Business regulation, labor force participation and employment in industrial countries," Journal of Economics and Business, Elsevier, vol. 61(3), pages 238-260.
    5. Giacinto Micucci & Valter di Giacinto, 2009. "The Producer Service Sector in Italy: Long-term Growth and its Local Determinants," Spatial Economic Analysis, Taylor & Francis Journals, vol. 4(4), pages 391-425.
    6. Gebhard Flaig & Horst Rottmann, 2005. "Labour Market Institutions and Employment Thresholds. An International Comparison," ifo Working Paper Series _no.15, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    7. Matthias Figo & Peter Mayerhofer, 2015. "Strukturwandel und regionales Wachstum - wissensintensive Unternehmensdienste als Wachstumsmotor?," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 145, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.
    8. Charlotte Senftleben & Hanna Wielandt, 2012. "The Polarization of Employment in German Local Labor Markets," SFB 649 Discussion Papers SFB649DP2012-013, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
    9. repec:wfo:wstudy:58503 is not listed on IDEAS
    10. Raquel Fonseca & Lise Patureau & Thepthida Sopraseuth, 2010. "Business Cycle Comovement and Labor Market Institutions: An Empirical Investigation," Review of International Economics, Wiley Blackwell, vol. 18(5), pages 865-881, November.
    11. Gebhard Flaig & Horst Rottmann, 2007. "Labour Market Institutions and the Employment Intensity of Output Growth. An International Comparison," CESifo Working Paper Series 2175, CESifo Group Munich.
    12. Gebhard Flaig & Horst Rottmann, 2004. "Erhöht der Kündigungsschutz die Beschäftigungsschwelle?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 57(17), pages 13-17, September.
    13. 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.
    14. Sergio Destefanis & Giuseppe Mastromatteo, 2010. "Labour-market performance in the OECD: some recent cross-country evidence," International Journal of Manpower, Emerald Group Publishing, vol. 31(7), pages 713-731, October.
    15. Helge Berger & Stephan Danninger, 2007. "The Employment Effects of Labor and Product Market Deregulation and Their Implications for Structural Reform," IMF Staff Papers, Palgrave Macmillan, vol. 54(3), pages 591-619, July.
    16. Gisela Di Meglio & Metka Stare & Andreja Jaklič, 2011. "Explanation for public and private service growth in the enlarged EU," The Service Industries Journal, Taylor & Francis Journals, vol. 32(4), pages 503-514, June.
    17. D'Agostino, Antonello & Serafini, Roberta & Ward-Warmedinger, Melanie E., 2006. "Sectoral Explanations of Employment in Europe: The Role of Services," IZA Discussion Papers 2257, Institute for the Study of Labor (IZA).
    18. Andrés Maroto-Sánchez, 2010. "Productivity in the services sector: conventional and current explanations," The Service Industries Journal, Taylor & Francis Journals, vol. 32(5), pages 719-746, October.
    19. Gebhard Flaig & Horst Rottmann, 2013. "Labour market institutions and unemployment: an international panel data analysis," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 40(4), pages 635-654, November.
    20. Sergio Destefanis & Giuseppe Mastromatteo, 2009. "Labor-market Performance in the OECD--An Assessment of Recent Evidence," Economics Working Paper Archive wp_559, Levy Economics Institute.
    21. Canfei He & Xiyan Mao, 2016. "Population dynamics and regional development in China," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 9(3), pages 535-549.
    22. Andrés Maroto-Sanchez, 2010. "Growth and productivity in the service sector: The state of the art," Working Papers 07/10, Instituto Universitario de Análisis Económico y Social.
    23. Destefanis, Sergio & Mastromatteo, Giuseppe, 2010. "Wage Inequality and Labour-market Performance. A Role for Corporate Social Responsibility - Disuguaglianza salariale e performance del mercato del lavoro," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 63(1), pages 91-120.
    24. Raquel Fonseca & Lise Patureau & Thepthida Sopraseuth, 2010. "Business Cycle Comovement and Labor Market Institutions: An Empirical Investigation," Review of International Economics, Wiley Blackwell, pages 865-881.

    More about this item

    Keywords

    employment; Product and Labor Market Regulations; Service Industries; structural change;

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • L80 - Industrial Organization - - Industry Studies: Services - - - General
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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