Politická ekonomie 2021, 69(6):669-688 | DOI: 10.18267/j.polek.1334

Kvantifikácia vplyvu zmien a zdrojov hospodárskeho rastu na elasticitu trhu práce v krajinách Európskej únie

Monika Daňová ORCID...a, Ivana Kravčáková Vozárová ORCID...a
a Prešovská univerzita v Prešove, Fakulta manažmentu, Prešov, Slovenská republika

Quantification of Effect of Changes and Sources of Economic Growth on Labour Market Elasticity in EU Countries

The aim of the paper is to verify the sensitivity of national labour markets to economic growth while respecting its sources and different growth trends. We monitored the change in employment caused by economic growth in the set of EU27 member states in the period 2000-2019. The sensitivity of the labour market was quantified by finding the values of the elasticity coefficient. To obtain it, we used a relation to calculate the point elasticity as well as a logarithmic linear regression model compiled for each member state. The differences in the response of the labour market were identified by comparing the values of the indicator. To determine the factors of employment changes, partial analyses were performed by dividing the evaluated period into sections, especially into periods of growth and decline. As a result, it was possible to identify the impact of economic development trends on the elasticity of the labour market. At the same time, subsets (groups of countries) were created based on similarity of labour productivity levels and employment rates. The results of the analyses indicated that the labour market in all cases responded to changes in economic performance in a short period of time, while the strength of the influence is also affected by the stability of economic development.

Keywords: Labour market, employment, economic growth, employment elasticity, labour productivity
JEL classification: C01, E24, F43, J40, R11

Received: July 29, 2020; Revised: October 16, 2021; Accepted: October 20, 2021; Published: December 21, 2021  Show citation

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Daňová, M., & Kravčáková Vozárová, I. (2021). Quantification of Effect of Changes and Sources of Economic Growth on Labour Market Elasticity in EU Countries. Politická ekonomie, 69(6), 669-688. doi: 10.18267/j.polek.1334
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