Productivity slowdown across European regions: does non-standard work matter?

Abstract

ABSTRACT In recent decades, Europe has experienced a significant slowdown in productivity, accompanied by rising regional inequalities. At the same time, the fragmentation of work and the rise of non-standard forms of employment have deeply reshaped labour markets. Through the analysis of an extensive database comprising data on regional labour markets and productivity trends, we investigate the relationship between non-standard work and labour productivity dynamics in European regions from 2004 to 2018. The findings highlight that increasing non-standard employment across regions is likely to negatively affect labour productivity growth. Moreover, to some extent, the spread of non-standard jobs, especially of permanent, yet involuntary, part-time positions, might contribute to the widening of regional disparities.