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Labour Contribution and Productivity in the European Union: A Cluster Analysis

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  • Batóg Jacek

    (University of Szczecin, Faculty of Economics and Management, Institute of Econometrics and Statistics, Mickiewicza 64, 71-101Szczecin, Poland)

Abstract

The paper deals with an analysis of dynamics and the differentiation of basic features that characterize employment in European Union countries. The conducted research considered characteristics of the labour force such as the share of total labour compensation in the GDP, the number of hours worked and labour productivity. According to economic theory, this last variable plays a crucial role in the formation of the long-term economic growth. Also examined in the paper was the influence of the economic crisis on the behaviour of the indicated variables. A main statistical data source was the Total Economy Database published by the Conference Board. It can be seen from the results of the research that there exists growing international differences between the basic characteristics of labour force utilization and productivity. The conclusions were drawn on the grounds of a cluster analysis, which allowed deriving homogenous groups of countries according to the specificity of labour utilization and efficiency.

Suggested Citation

  • Batóg Jacek, 2017. "Labour Contribution and Productivity in the European Union: A Cluster Analysis," Folia Oeconomica Stetinensia, Sciendo, vol. 17(2), pages 7-18, December.
    • Handle: RePEc:vrs:foeste:v:17:y:2017:i:2:p:7-18:n:1
    DOI: 10.1515/foli-2017-0015
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    References listed on IDEAS

    as
    1. Peter Stam & Jessica Coleman, 2010. "The relationship between hours worked in the UK and the economy," Economic & Labour Market Review, Palgrave Macmillan;Office for National Statistics, vol. 4(9), pages 50-54, August.
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    4. Schmidt, Torsten & Vosen, Simeon, 2013. "Demographic change and the labour share of income," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 26(1), pages 357-378.
    5. John Hutchinson & Damiaan Persyn, 2012. "Globalisation, concentration and footloose firms: in search of the main cause of the declining labour share," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 148(1), pages 17-43, April.
    6. 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.
    7. Jan Hogrefe & Marcus Kappler, 2013. "The labour share of income: heterogeneous causes for parallel movements?," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 11(3), pages 303-319, September.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    labour force; productivity; cluster analysis; European Union;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis

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