To link to full-text access for this article, visit this link:
Byline: Enrique Palazuelos, Rafael Fernandez
Economic growth; Labour productivity; Domestic demand; Labour
This paper presents an explanation of the causes of the slowdown in
growth in labour productivity in European economies in recent decades.
In first instance, the weakness of domestic demand is what determines
this slowdown in productivity. However, differences with the (mediocre)
rates of growth of productivity between European countries are also
related to the specific features of their respective labour markets
because, in a context of weak domestic demand, there is a trade-off
between employment and productivity.
World Economic Growth Investigation Group (GICEM), Department of
Applied Economics (I), Complutense University of Madrid, Spain
Received June 2007; Revised August 2008; Accepted August 2008
(footnote) [star] This work is part of a research project called
"Growth in the European Economies, labour markets, and
deslocalization processes", which is financed by the Complutense
University for the period 2007-2008.