Arbeitspapier
Real Unit Labour Costs in Eurozone Countries: Drivers and Clusters
We examine the trajectories of the real unit labour costs (RULCs) in a selection of Eurozone economies. Strong asymmetries in the convergence process of the RULCs and its components real wages, capital intensity, and technology are uncovered through decomposition and cluster analyses. In the last three decades, the PIIGS (Portugal, Ireland, Italy, Greece, and Spain) succeeded in reducing their RULCs by more than their northern partners. With the exception of Ireland, however, technological progress was weak; it was through capital intensification that periphery economies gained efficiency and competitiveness. Cluster heterogeneity, and lack of robustness in cluster composition, is a reflection of the difficulties in achieving real convergence and, by extension, nominal convergence. We conclude by outlining technology as the key convergence factor, and call for a renewed attention to real convergence indicators to strengthen the process of European integration.
- Language
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Englisch
- Bibliographic citation
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Series: IZA Discussion Papers ; No. 8258
- Classification
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Wirtschaft
Economic Growth of Open Economies
Economic Impacts of Globalization: Macroeconomic Impacts
Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
Economywide Country Studies: Europe
- Subject
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real unit labour costs
Eurozone
real wages
capital intensity
technology
- Event
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Geistige Schöpfung
- (who)
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Ordóñez, Javier
Sala, Hector
Silva, José I.
- Event
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Veröffentlichung
- (who)
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Institute for the Study of Labor (IZA)
- (where)
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Bonn
- (when)
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2014
- Handle
- Last update
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10.03.2025, 11:42 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Ordóñez, Javier
- Sala, Hector
- Silva, José I.
- Institute for the Study of Labor (IZA)
Time of origin
- 2014
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