Industrial structure and jobless growth in transition economies

Trond-Arne Borgersen and Roswitha M. King

Post-Communist Economies, 2016, vol. 28, issue 4, 520-536

Abstract: When does employment growth mirror aggregate growth? Applying a two sector model, where productivity growth differs across sectors of production, this article is concerned with a feature characterising a number of transition economies: a divergence between production and employment growth. In our framework the industrial structure that allows employment growth to mirror output growth is endogenous, and related to a number of industry- and economy-wide characteristics. The article shows how the critical industrial structure necessary for avoiding ‘jobless growth’ is context-specific, questioning a ‘one size fits all’ policy approach when aiming to fulfil the Europe 2020 Strategy.

Date: 2016
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DOI: 10.1080/14631377.2016.1237037

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