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The employment effects of the 'new economy'. A comparison of the European Union and the United States.

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Article

van Ark, Bart ; Inklaar, Robert ; McGucklin, Robert H. ; Timmer, Marcel P.

National Institute Economic Review

2003

184

April

86-98

comparison ; employment ; information technology ; labour productivity ; new economy

EU countries ; USA

Employment

English

Bibliogr.

"The paper provides an analysis of the trends in labour productivity and employment growth at industry level in the European Union and the United States during the 1990's. We analyse relationships for groups of industries, i..e. industries that produce ICT products and services, those that invest strongly in ICT, and those that make less intensive use of ICT. The main findings are that the inverse relationship between employment and productivity growth has been much more prominent in manufacturing industries that in services industries. Secondly, during the 1990s, this relationship has turned positive in many industries, in particlar in ICT-producing industries and in ICT-using industries in the service sector. Finally, the employment-reducing effects of productivity growth hav remained considerably stronger in urope than in the US."

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