UNFAVOURABLE PRODUCTIVITY GROWTH IN THE EUROPEAN UNION - THE ROLE OF LABOUR MARKET INSTITUTIONS

Could be blamed the European labour markets for the unfavourable development of the productivity growth in the EU? This paper investigates the relation between selected labour market institutions and productivity growth in 19 EU member states. The effects of previous labour market regulations via youth and long-term unemployment are also considered. The analysis is executed for the period from 1995 to 2013. As analytical tool, panel data model with fixed effects is applied. The results suggest significantly positive effect of trade unions and robust negative effects of active labour market policies and unemployment benefits on both total factor and labour productivity growth.