11. Is the European Economy a Patient and the Union its Doctor? On Jobs and Growth in Europe
- Author:
- Sjef Ederveen, Albert van der Hoorst, and Paul Tang
- Publication Date:
- 04-2005
- Content Type:
- Working Paper
- Institution:
- Centre for European Policy Studies
- Abstract:
- A stronger focus on jobs and growth is part of an effort to renew the Lisbon strategy. Yet the view that economic expansion contributes to maintaining Lisbon's other goals of social cohesion as well as the environment is somewhat optimistic. First, there are structural trade-offs among the central elements of the Lisbon strategy. Escaping these trade-offs temporarily is sometimes possible but requires policy changes. Second, higher productivity (growth) may not provide more structural room for governments to manoeuvre. It leads to higher tax receipts but also to higher public expenditures since public sector wages and social security benefits are linked to productivity. In contrast, more employment (jobs) is associated with a smaller public sector. But to engineer the increase in employment, changes in welfare state arrangements are needed. In other words, focussing solely on the sick child will probably harm the other children.
- Topic:
- Security, Development, Economics, and Human Welfare
- Political Geography:
- Europe and Lisbon