IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Employment-Productivity Trade-off and Labour Composition

  • Hervé Boulhol
  • Laure Turner

This paper formalises the analysis of the employment-productivity trade-off by extending the framework developed by Gordon (1997) to account for labour heterogeneity. The extent of the trade-off is determined by the extent of the adjustment of capital to effective labour and by the changes in aggregate labour quality. The main experiment reported in the paper consists of assessing the labour utilisation and productivity impacts in OECD countries of aligning group-specific employment rates to the US levels. Matching the US employment performance defined in that sense would enable low-employment OECD countries to reduce only half of the aggregate employment-rate gap vis-à-vis the United States, the other half being mechanically due to differences in the population structure by age and educational attainment. In this experiment, a 1% gain in employment is associated with a decrease of 0.24% in labour productivity on average across countries, and of 0.35% in low-employment countries. Compromis emploi - productivité et effets de composition Cette étude formalise l’analyse du compromis entre emploi et productivité en étendant le cadre développé par Gordon (1997) pour prendre en compte l’hétérogénéité de la main-d’oeuvre. L’ampleur de ce compromis est déterminée par l’étendue de l’ajustement du capital à la main-d’oeuvre effective et par les changements dans la qualité de la main-d’oeuvre. La principale expérience rapportée dans l’étude consiste en l’évaluation de l’impact sur l’utilisation de la main-d’oeuvre et sur la productivité du travail de l’alignement, pour chaque pays de l’OCDE, des taux d’emplois par groupe de population sur ceux des États-Unis. Répliquant la performance des États-Unis ainsi définie permettrait aux pays de l’OCDE ayant un faible niveau d’emplois de réduire seulement la moitié de l’écart de taux d’emploi agrégé vis-à-vis des États-Unis, l’autre moitié étant due mécaniquement à la structure de la population par âge et niveau d’éducation. Dans cette expérience, des gains de 1% en termes d’emplois sont associés à une baisse de 0.24% de la productivité du travail en moyenne pour les pays de l’OCDE et de 0.35% pour les pays ayant les niveaux d’emplois les plus bas.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://dx.doi.org/10.1787/224146182015
Our checks indicate that this address may not be valid because: 403 Forbidden (http://dx.doi.org/10.1787/224146182015 [303 See Other]--> http://www.oecd-ilibrary.org/economics/employment-productivity-trade-off-and-labour-composition_224146182015). If this is indeed the case, please notify ()


Download Restriction: no

Paper provided by OECD Publishing in its series OECD Economics Department Working Papers with number 698.

as
in new window

Length:
Date of creation: 14 May 2009
Date of revision:
Handle: RePEc:oec:ecoaaa:698-en
Contact details of provider: Postal: 2 rue Andre Pascal, 75775 Paris Cedex 16
Phone: 33-(0)-1-45 24 82 00
Fax: 33-(0)-1-45 24 85 00
Web page: http://www.oecd.org
Email:


More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Bourlès, Renaud & Cette, Gilbert, 2005. "A comparison of structural productivity levels in the major industrialised countries," MPRA Paper 7330, University Library of Munich, Germany.
  2. Gust, Christopher & Marquez, Jaime, 2004. "International comparisons of productivity growth: the role of information technology and regulatory practices," Labour Economics, Elsevier, vol. 11(1), pages 33-58, February.
  3. Guido Schwerdt & Jarkko Turunen, 2007. "Growth In Euro Area Labor Quality," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 53(4), pages 716-734, December.
  4. Diewert, W. E., 1976. "Exact and superlative index numbers," Journal of Econometrics, Elsevier, vol. 4(2), pages 115-145, May.
  5. Martin Werding, 2008. "Ageing and Productivity Growth: Are there Macro-level Cohort Effects of Human Capital?," CESifo Working Paper Series 2207, CESifo Group Munich.
  6. Hubert Strauss & Christine de la Maisonneuve, 2007. "The Wage Premium on Tertiary Education: New Estimates for 21 OECD Countries," OECD Economics Department Working Papers 589, OECD Publishing.
  7. David E. Bloom & David Canning & Günther Fink & Jocelyn Finlay, 2006. "Does Age Structure Forecast Economic Growth?," PGDA Working Papers 2006, Program on the Global Demography of Aging.
  8. 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.
  9. 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.
  10. 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.
  11. Hervé Boulhol, 2009. "The Effects of Population Structure on Employment and Productivity," OECD Economics Department Working Papers 684, OECD Publishing.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:oec:ecoaaa:698-en. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.