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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
    Note: 341536
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    employment; Product and Labor Market Regulations; Service Industries; structural change;
    All these keywords.

    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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