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Unit Labour Cost and Unit Capital Cost Indicators in Slovenia and the Other Euro Area Countries

Lenarčič, Črt (2019): Unit Labour Cost and Unit Capital Cost Indicators in Slovenia and the Other Euro Area Countries. Published in: Journal of Innovative Business and Management , Vol. 11, No. 2 (16 November 2019): pp. 1-14.

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Abstract

Prices and costs are often the main points of interest in a typical competitiveness analysis. If studying prices cover the inflation and exchange rate perspectives, studying costs usually covers the relationship between labour costs and labour productivity. Strictly focusing on the labour side within the cost analysis does not offer a complete cost-overview of the production process. In this paper we try to complement the toolbox for assessing competitiveness in Slovenia and the rest of the euro area countries by constructing an unit capital cost index (UKC).

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