Analysis of the structure and dynamics of labor productivity on the example of Visegrad Group countries

Abstract

Striving for sustainable economic growth is the goal of states, and often also of the international organizations established for this purpose. The implementation of this objective requires not only defining the concept of sustainable growth, but above all providing appropriate measures. One of the reliable economic indicators is the labor productivity index used in the article, which reflects the relation between GDP and wages in whole economy. The economic goal of the governments should be the systematic increase of this indicator. The index allows to calculate labor productivity for the whole country, as well as for individual regions or industries. This index, due to its dimensionless value, ensures full comparability in time and space between the obtained results. The policy of increase labor productivity in the country, can be decomposed into individual sectors what allows monitoring of the productivity of each of them. This will allow to determine how particular sector contributes to whole country performance and take corrective action if adverse changes occur. The research covered the countries of the Visegrad Group. The industry division follows the Statistical Classification of Economic Activities in the European Community NACE rev. 2.