Labour productivity in the Nordic EU countries - a comparative overview and explanatory factors – 1998-2004

This paper analyses the differences in hourly labour productivity growth rates and levels between the Nordic EU countries (Denmark, Finland and Sweden) and four larger euro area countries (Germany, France, Italy and Spain). Additional information for the euro area as a whole, the UK and the US is also provided. Given that the economic and social models developed in the Nordic EU countries are in many ways closer to those of the larger euro area countries than that of the US, the experience of these countries is particularly interesting. Since the mid-1990s, the Nordic EU countries, particularly Sweden and Finland, have experienced stronger labour productivity growth than the larger euro countries. Like in the US, innovation and technological changes have played a major role in explaining the higher labour productivity growth in the Nordic EU countries compared with the larger euro area economies. Information and Communication Technology (ICT) diffusion is a key element to explain these differences. A number of institutional indicators, relating to market regulation, human capital, R&D investments and venture capital, show that the Nordic EU economies are better positioned than some of the larger euro area countries to exploit the opportunities provided by ICT in terms of productivity growth. However, remaining labour market rigidities may not allow the Nordic EU countries to fully enjoy the benefits of ICT diffusion in terms of increased employment.

What does European institutional integration tell us about trade integration?

This paper analyses trends in working time inthe euro area, in comparison with the US, over the period 1970 to 2004 and examines the causes and consequences of the observed changes. Between 1970 and 2004, a downward trend in average annual hours worked per worker can be observed for the euro area as a whole, all individual euro area countries and the United States. In contrast to the US, the euro area and a number of euro area countries also experienced a significant decline in annual hours worked per capita (“labour utilisation”) over the last three decades. Data reveal important disparities across countries –both in trends and levels. While some countries managed to reverse their downward trends inlabour utilisation in the 1980s and 1990s, the level of average hours worked per capita in 2004 remained significantly below their 1970 levels for all euro area countries for which data are available. From a policy perspective, falling annual average hours worked per worker or per capita are not a problem per se, ifthey reflect preferences. For example,increasing shares of voluntary part-time employment across many euro area countries, whilst increasing European employment rates, have contributed to the downward trend in average annual hours per worker. However, to the extent that low working hours are due to institutional features which create disincentives to work, such as high tax wedges and high unemployment benefits, or enforced reductions in working hours, these factors should be addressed.Annual hours of work, workingtime, labour utilisation, productivity, percapita income, institutions, working timelegislation, Europe and US, part-time work,preferences, labour costs, employment.

Sectoral specialisation in the EU a macroeconomic perspective

This paper analyses trends in sectoral specialisation in the EU and concludes the following: 1) The European production structure appears more homogenous than that of the US. 2) While sectoral specialisation has shown a slight increase in some smaller euro area countries towards the end-1990s, it is too early to detect any potential impact of EMU. 3) Despite some changes in sectoral composition, the business cycles of euro area countries became more synchronised over the 1990s, which may be seen as reassuring from the point of view of the single monetary policy. 4) Sectoral re-allocation accounts for as much as 50% of the increase in labour productivity growth in business sector services in the euro area. 5) The slowdown of European labour productivity growth relative to the US since the mid-1990s is explained by a stronger performance in the US wholesale and retail trade, financial intermediation and high-tech manufacturing sectors.

Trends in OECD Countries' International Competitiveness: The Influence of Emerging Market Economies

The large exchange rate depreciations registered in a number of Asian countries since mid-1997 have raised the issue of whether this could lead to major shifts in the relative costs and prices of production across countries, and hence in the relative competitive positions of OECD and non-OECD countries. To take account of the growing importance of Asian emerging economies in world markets, they have been added, together with a number of other non-OECD emerging market economies, to the group of countries covered in the calculation of the OECD Secretariat competitiveness indicators. The main findings that emerge from the analysis presented in this Working Paper are the following: first, the United States is by far the most competitive economy among major OECD countries, both in terms of higher productivity performance and lower absolute cost levels in the manufacturing sector. However, emerging market economies for which data are available display significantly lower levels of unit ... Les importantes dépréciations de change enregistrées par un certain nombre d’économies émergentes d’Asie depuis la mi-97 ont soulevé la question de savoir si cela risquait de conduire à des changements significatifs de prix et coûts relatifs entre les pays OCDE et non-OECD. Afin de prendre en compte l’importance croissante des économies émergentes d’Asie dans les échanges mondiaux, ces dernières ont été ajoutées, avec d’autres économies émergentes, au groupe de pays entrant dans le calcul des indicateurs de compétitivité du Secrétariat de l’OCDE. Les principaux résultats de l’analyse présentée dans ce document de travail sont les suivants: premièrement, les Etats Unis sont de loin l’économie la plus compétitive parmi les pays de l’OCDE,à la fois en termes de niveaux de productivité ou de coûts salariaux unitaires de main d’oeuvre dans le secteur manufacturier. Cependant, les niveaux de coût dans les économies émergentes pour lesquelles il existe des données sont nettement plus bas ...