Productivity Convergence in the European Union – The Role of Labour Market Institutions

Given the relatively low level of productivity and the persisting productivity gap (between the European Union and the United States, and among the member states), measures to enhance total factor productivity growth and productivity convergence in the member states of the European Union are inevita...

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Bibliographic Details
Published in:Ekonomický časopis 2021-01, Vol.69 (9), p.928-953
Main Author: Chovancová, Petra
Format: Article
Language:English
Subjects:
EU-Accession / EU-DEvelopment
Human Resources in Economy
Labor relations
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Summary:Given the relatively low level of productivity and the persisting productivity gap (between the European Union and the United States, and among the member states), measures to enhance total factor productivity growth and productivity convergence in the member states of the European Union are inevitable. The aim of this paper is to determine the factors influencing productivity convergence in member states of the European Union, with emphasis on the role of selected labour market institutions. By means of fixed effects panel regression (LSDV estimator), a catch-up specification of production function and its extensions are estimated. The empirical analysis is conducted on a dataset covering observations from 1995 to 2017 for all member states of the European Union. The empirical results have approved the role of knowledge in determining total factor productivity convergence and the suggestion about the decisive role of labour market institutions.
ISSN:0013-3035
2729-7470
DOI:10.31577/ekoncas.2021.09.03