A trade-off between employment and labor productivity in Russia and OECD countries
Importance The article overviews the results of modeling linear relationships between employment and productivity in the countries of the Organization for Economic Cooperation and Development and Russia in 1970-2012. Objectives The research provides a general overview and identifies the crucial patterns of relationships between employment and productivity in global economy in the long run. Methods The objectives are addressed using a structural and regressive analysis, OECD statistics, autocorrelation distributed lag models and a methodology for analyzing the cause-and-effect relations. Results The research describes the key trends in changing labor productivity and the number of employed in OECD economies and Russia. I also clarify the specifics of the formation and structure of lag of indicators’ mutual influence. Conclusions and Relevance In the economies under study, statistically significant interactions are limited with the current effect and effect with a year lag. The research outcome may be useful to plan activities for increasing labor productivity nationwide, organizing the national employment market, and securing national interests in the economy.