Kiel Working Papers, Kiel Institute for World Economics
No 927:
How Competitive is Europe's Labor?
Horst Siebert
Abstract: Europe's labor is not competitive taking unemployment as
the relevant indicator. The paper looks at other indicators such as job
creation, productivity and unit labor costs and skills. It analyzes the
reasons for the lack of competitiveness including a low degree of wage
differentiation, the impact of the welfare state on the reservation wage
and high labor costs to finance the social security system.
JEL-Codes: J00; (follow links to similar papers)
23 pages, May 1999
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