Structural change in Ireland: The contribution of sectoral employment distribution to labour productivity convergence between Ireland and the EU: 1970-1990

The secular transformation in Irish sectoral employment shares, which has been stimulated by the change in focus of both Irish industrial and trade policies, mirrors the significant changes that have occurred in international structures of production. Estimates the contribution of changes in Ireland’s sectoral employment structure to labour productivity convergence between Ireland and the EU average from 1970-1990. Identifies the variation in Irish sectoral employment distribution over time as a significant source of labour productivity convergence. Ireland’s labour productivity convergence was 0.3 per cent per annum higher as a result of shifts in Irish employment distribution than would have occurred without changes in the structure of Irish employment.