Explanation for public and private service growth in the enlarged EU

This paper complements a large body of literature on structural change and underlying factors for the expansion of services. The main aim is to explore the determinants of the employment growth in the enlarged European Union from the perspective of various service groups, public, private and mixed services, and to identify which factors played the most significant role in the period 1995--2007. The roles played by standard determinants, the state, social and demographic changes, institutional framework of labour markets and membership to old EU15 considerably differ across service groups.