This paper addresses the link between productivity and labour mobility. The hypothesis tested in the paper is that … knowledge is then diffused within the new environment creating spillovers and leading to productivity improvements. A … theoretical framework is presented wherein productivity growth is modelled through knowledge acquisition with respect to labour …

The euro area has experienced a sustained decline in labour productivity growth since the 1980s. In the economic … literature this phenomenon is commonly explained by a decline in capital deepening and lower total factor productivity (TFP …) growth. However, the decline in labour productivity growth might partly also reflect a lower contribution of labour quality …