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Table 5 RULCs and components

From: Real unit labour costs in Eurozone countries: drivers and clusters

   Simulations   Changes explained by:   % Growth drivers*
   S1 S4 S7   w t (1− α t ) K t A t    
   (A) (B) (C)   (A-100) (B-A) (C-B)   \(\frac{\mathbf{(B-A)}}{\mathbf{(A-C)}}\) \(\frac{\mathbf{(C-B)}}{\mathbf{(A-C)}}\)
Capital-intensity driven gains in RULCs            
Greece   104.7 80.3 79.7   4.7 -24.4 -0.7   97.4 2.6
Italy   122.7 97.8 83.5   22.7 -25.0 -14.3   63.6 36.4
Portugal   169.5 109.4 79.3   69.5 -60.1 -30.1   66.7 33.3
Spain   128.3 91.7 78.1   28.3 -36.6 -13.6   73.0 27.0
Technology driven gains in RULCs            
Belgium   148.3 125.8 96.9   48.3 -22.4 -28.9   43.7 56.3
Finland   182.3 151.6 93.2   82.3 -30.7 -58.3   34.5 65.5
Ireland   197.2 142.5 73.6   97.2 -54.7 -68.9   44.3 55.7
Netherlands   136.3 118.0 88.3   36.3 -18.3 -29.7   38.2 61.8
Sweden   153.9 124.6 82.8   53.9 -29.3 -41.7   41.2 58.8
Balanced driven gains in RULCs            
Austria   152.4 117.6 87.4   52.4 -34.8 -30.2   53.5 46.5
France   137.9 109.0 88.3   37.9 -29.0 -20.6   58.4 41.6
  1. Notes: S1, S4 and S7 correspond to Simulations 1, 4, and 7, as defined in Table 2; *:indicates the relative share of capital intensity and technological progress on the overall downward impact of these growth drivers on RULCs.
  2. Source: Own decomposition based on official European Commission data (Ameco Database).