Magdalena Cyrek

Department of Microeconomics, University of Rzeszów

Poland

Email: mcyrek@ur.edu.pl

Modernization of employment structures enhancing socioeconomic cohesion in the European Union countries

Abstract. This study investigates the relative efficiency of the 28 EU countries when transforming employment in four different sectors into socioeconomic cohesion. It evaluates the cohesive effects from modernization processes into a service and knowledge-based economy basing on the most recent data (generally describing the 2015 year). Results for the economies are derived from the usage of DEA method assuming non-radial transformations in an input-oriented model (CCR-NR). Socioeconomic cohesion is researched in its two dimensions: wealth distribution and social networks. Thus, a classical area of research on efficiency with productive results is browsed into a social field. It is of special importance in the post-crisis period when economic divergence, growing social tensions as well as strong diversification in public social support within the EU countries is observed. The main findings support the view that modern changes in employment structures are favourable for socioeconomic cohesion, as the highest efficiency is typical for knowledge-intensive services and consecutively for less knowledge-intensive services. The poorest results are gained in low and medium-low technology manufacturing and just a little better – in high and medium-high technology manufacturing. The study provides some arguments into the discussion about de- and reindustrialization. We have found that the EU policy enhancing cohesiveness should mainly support the processes of KIS development as well as human capital creation and its economic engagement.

Received: June, 2017

1st Revision: August, 2017

Accepted: September, 2017

DOI: 10.14254/2071-8330.2017/10-3/14

JEL Classification: I30, J20, J21, J24, O10, O11, O14, O15, O40

Keywords: sectors, social efficiency, DEA, the EU countries