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Gains in U.S. productivity: stopgap measure or lasting change?

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Author Info

  • Mary Daly
  • Fred Furlong

Abstract

This Economic Letter uses state-level data to contribute to the analyses of the drivers of gains in U.S. labor productivity since 2000--stopgap measures among cautious employers or more lasting changes. While the nation has had a so-called jobless recovery, many states posted net job gains early in the recovery and regained previous peaks in employment levels well ahead of the nation. Comparing states with and without job recoveries, we find no significant difference in productivity growth. The results indicate that differences in demand (output) rather than differences in productivity growth have been the primary drivers of job growth across states. Moreover, the breadth of the gains in the level of productivity suggests that they will be long-lasting.

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File URL: http://www.frbsf.org/publications/economics/letter/2005/el2005-05.html
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File URL: http://www.frbsf.org/publications/economics/letter/2005/el2005-05.pdf
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Bibliographic Info

Article provided by Federal Reserve Bank of San Francisco in its journal FRBSF Economic Letter.

Volume (Year): (2005)
Issue (Month): mar11 ()
Pages:

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Handle: RePEc:fip:fedfel:y:2005:i:mar11:n:2005-05

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Keywords: Productivity;

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