The stability of the labour share income is a fundamental feature macroeconomic models, with broad implications for shape production function, inequality, and dynamics. However, empirically, this has been slowly declining in many countries several decades, though its causes are subject much debate. This paper analyses drivers developments Europe at sectoral level. We begin simple shift-share an...

The purpose of the paper is to find out whether linkages between productivity and innovation are different among Estonian service sector sub-sectors. In this paper productivity is measured as value added per employee. An original approach toward measurement of productivity is used, decomposing it into three components: labour costs, depreciation and gross profit per employee. Four types of inno...

How Tax Progression Affects Effort and Employment Within an efficiency wage framework, we study the effects of two revenue-neutral tax reforms that change the progressivity of the labour tax system. A revenue-neutral increase in both the wage tax and tax exemption and a revenue-neutral change in the composition of labour taxation towards the tax with the smaller tax base will lead to the same r...

Inflation Adjustment and Labour Market Structures: Evidence from a Multi-Country Study An empirical analysis of the impact of labour market structures on the response of inflation to macroeconomic shocks is presented. Results based on a 20 country panel show that if labour market coordination is high, the effect on inflation of movements in unemployment, import prices, tax rates and productivit...