The interaction of labour and resource productivity : scientific background report to the scoping study

The purpose of this scoping study is to work out how resource efficiency affects labour productivity and employment. The link is analysed on an empirical and a conceptual basis focussing on the macro-economic and sectorial level. The study looks for real-life evidence in business and the economy as well as for conceptual arguments in economic theory. It aims at taking stock and drawing lessons for better policies that both enhance resource efficiency and employment. While the scoping study presents the results in a very concise way - in the manner of an extended executive summary - this final report provides more information. The results are described for each of the three tasks respectively. Based on the overall findings we draw conclusions on how resource policies could be better integrated in economic policy making in a clear and concise manner for decision makers. Finally, we identify the largest gaps and hence ideas for further research. This document is structured as follows: After a short theoretical and conceptual explanation of the relationships that will be considered in this scoping study we present the historical trends of labour and resource productivity and its main determinants. Then, we analyse the effects of resource productivity on growth, resource use and in particular on employment. After that we provide an empirical analysis in order to give an overview of the develop-ment of material use and of labour intensity in different Member States. The objective is to provide an analysis of different sectors on their material, la-bour and capital productivity, and to understand the reasons for differences across Member States. Furthermore, we explore the impact of material productivity on employment outcomes at the macro level. After that, we come back to theoretical considerations how to better integrate resource productivity in the economic model. Based on the overall findings we draw conclusions on how resource policies could be better integrated in economic policy making in a clear and concise manner for decision makers. Finally, we identify the largest gaps and hence ideas for further research.