45th Congress of the European Regional Science Association: "Land Use and Water Management in a Sustainable Network Society", 23-27 August 2005, Amsterdam, The Netherlands
This paper analyses the wage cost and labour productivity differentials in the European Union for period 1995-2000, from a regional and sectorial perspective. To this end we analyse the evolution of the unit labour cost by sector and its decomposition between the unit labour requirement and the unit price of labour. Results show the existence of high regional disparities, that differ with the sector. Also, we find diverse combinations in terms of productivity and unit price of labour, driving to the existence of different competitive strategies. Finally, we try to find the existence of relation between the different patterns of competitiveness and regional economic growth.