IJSRP, Volume 4, Issue 9, September 2014 Edition [ISSN 2250-3153]
The paper tried to explore the various studies on the nexus between the productivity growth and the employment through VAR model of Dritsakis(2012) and Blanchand, Solow and Wilson(1995) model and found cointegration and causality but the association went to either direction. In the short run, the nexus was seen negative but not in all countries and in the long run , the association was found both positive and negative in the world economies like Europe, America ,Africa and in Asia. No general conclusion could not be drawn on the nexus because state of technology, employees benefit, wage structure, hours of labour vary from country to country whether it was in USA,France,UK ,India or in EU. Even, the association is different from sectors to sectors. Above all, if the scale of measurement of labour productivity differs, the association between labour productivity and employment may also differ.