Real unit labour costs in Eurozone countries : drivers and clusters
Ordóñez, Javier 1947- (Universitat Jaume I)
Sala Lorda, Hèctor (Universitat Autònoma de Barcelona)
Silva, José I. (University of Kent)
Universitat Autònoma de Barcelona. Departament d'Economia Aplicada

Imprint: Universitat Autònoma de Barcelona. Departament d'Economia Aplicada 2014
Description: 38 p.
Abstract: 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.
Note: Número d'acord de subvenció MINECO/ECO2011-30260-C03-0
Note: Número d'acord de subvenció PROMETEO/2009/098
Note: Número d'acord de subvenció MINECO/ECO2012-31081
Rights: L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons: Creative Commons
Language: Anglès.
Series: Documents de treball
Series: Document de treball (Universitat Autònoma de Barcelona. Departament d'Economia Aplicada) ; 14.05
Document: workingPaper
Subject: Política monetària ; Unió Europea ; Real unit labour costs ; Eurozone ; Real wages ; Capital intensity ; Technology

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38 p, 331.8 KB

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Research literature > Working papers > Department of Applied Economics. Working papers

 Record created 2015-06-09, last modified 2019-11-15

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