IDEAS home Printed from https://ideas.repec.org/p/wii/rpaper/rr390.html
   My bibliography  Save this paper

Structural Adjustment and Unit Labour Cost Developments in Europe’s Periphery: Patterns before and during the Crisis

Author

Listed:

Abstract

Abstract This paper analyses developments in production structures in pre-crisis and during the crisis years in the range of EU ‘peripheral economies’ (i.e. the lower- and medium-income economies in the South and the Centre/East). The emphasis is on the development of the tradable sector (and manufacturing in particular) relative to non-tradable sectors and whether these are reflected in longer-term trade imbalances. Different groups of economies emerge, some with a strong manufacturing base, others with a very weak one. We investigate whether and to which extent structural readjustments took place during the crisis years and also analyse in detail relative unit labour cost (ULC) developments across sectors. A decomposition analysis shows that ULC developments are mainly driven during the crisis by output and employment adjustments (rather than by labour compensation) posing the question of whether capacity contraction effects might make ‘weak economies’ in the EU’s periphery even more ‘trade balance constrained’ in the wake of the crisis.

Suggested Citation

  • Doris Hanzl-Weiss & Michael Landesmann, 2013. "Structural Adjustment and Unit Labour Cost Developments in Europe’s Periphery: Patterns before and during the Crisis," wiiw Research Reports 390, The Vienna Institute for International Economic Studies, wiiw.
  • Handle: RePEc:wii:rpaper:rr:390
    as

    Download full text from publisher

    File URL: https://wiiw.ac.at/structural-adjustment-and-unit-labour-cost-developments-in-europe-s-periphery-patterns-before-and-during-the-crisis-dlp-2986.pdf
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Michael Landesmann & Doris Hanzl-Weiss, 2016. "Correcting external imbalances in the European economy," Chapters,in: Boosting European Competitiveness, chapter 3, pages 14-36 Edward Elgar Publishing.

    More about this item

    Keywords

    tradable sector; non-tradable sector; real effective exchange rates; unit labour costs; Europe’s peripheral economies; trade and current account imbalances; structural developments in Europe’s periphery; Central and Southeast Europe;

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wii:rpaper:rr:390. 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: (Customer service). General contact details of provider: http://edirc.repec.org/data/wiiwwat.html .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.