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The Development of Real Unit Labour Costs in the Context of Cyclical Fluctuations in the Economy

Author

Listed:
  • Martina Novotná

    (University of South Bohemia in České Budějovice)

  • Tomáš Volek

    (University of South Bohemia in České Budějovice)

Abstract

The main aim of this paper is to analyse the reaction of real unit labour costs and labour productivity in the EU Member States to cyclical fluctuations in the economy of the EU and in the context of different starting positions for each state. The starting position of the states was determined by the value of gross value added per employee. The used dates were gathered over the period 1996 - 2011 (16 years). The analysis shows that the dynamics of labour productivity is strongly positively determined by the cyclical development of the economy of the EU. On the other hand, the dynamics of real unit labour costs is not significantly affected by cyclical fluctuations. The analysis has found that the states with the lowest average gross value added per worker in the base year have less reaction to cyclical fluctuations from the perspective of the dynamics of the monitored indicators.

Suggested Citation

  • Martina Novotná & Tomáš Volek, 2013. "The Development of Real Unit Labour Costs in the Context of Cyclical Fluctuations in the Economy," Acta Universitatis Bohemiae Meridionales, University of South Bohemia in Ceske Budejovice, vol. 16(1), pages 101-109.
    • Handle: RePEc:boh:actaub:v:16:y:2013:i:1:p:101-109
    DOI: 10.32725/acta.2013.010
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    References listed on IDEAS

    as
    1. Ark, Bart van & Stuivenwold, Edwin & Ypma, Gerard, 2005. "Unit labour costs, productivity and international competitiveness," GGDC Research Memorandum 200580, Groningen Growth and Development Centre, University of Groningen.
    2. repec:dgr:rugggd:200580 is not listed on IDEAS
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    More about this item

    Keywords

    Real Unit Labour Costs; Labour Productivity; European Union; Gross Value Added;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production

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