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Employment And Productivity: Disentangling Employment Structure And Qualification Effects

Date Added: Mar 2010
Format: PDF

This paper studies the effect of changes in the employment rate on labour productivity per hour, taking an empirical approach. By splitting the workforce into three qualification categories, this study allows to distinguish the effects of changes in the employment rate structure from those of changes in the qualification structure. With the results obtained, the authors are then able to emphasise the mechanical effect on GDP, for each country in this panel, of a catch-up with the best practice with respect to employment rate structure and qualification level. It appears that the two effects are more or less of the same magnitude.