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Can Sectoral Reallocations of Labour Explain Canada’s Absymal Productivity Performance?

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  • Andrew Sharpe

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    Abstract

    This report presents a framework for decomposing aggregate productivity growth into within-sector effects and sectoral reallocation effects. This framework is used to analyze productivity growth in 12 Canadian industries for the 1961-2007 period and for several subperiods. The results do not support the common view that Canada’s weak post-2000 productivity performance is attributable to a reallocation of labour toward mining, oil and gas, a sector with low productivity growth. Rather, it was the fall in labour productivity growth in manufacturing that accounted for all of the slowdown in business sector productivity growth after 2000.

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    File URL: http://www.csls.ca/ipm/19/IPM-19-sharpe.pdf
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    Bibliographic Info

    Article provided by Centre for the Study of Living Standards in its journal International Productivity Monitor.

    Volume (Year): 19 (2010)
    Issue (Month): (Spring)
    Pages: 40-49

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    Handle: RePEc:sls:ipmsls:v:19:y:2010:3

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    Related research

    Keywords: productivity growth; sectoral reallocation; labour productivity growth; industry; Canada;

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    References

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    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    1. Jianmin Tang & Weimin Wang, 2004. "Sources of aggregate labour productivity growth in Canada and the United States," Canadian Journal of Economics, Canadian Economics Association, vol. 37(2), pages 421-444, May.
    2. Jean-Francois Arsenault & Andrew Sharpe, 2008. "An Analysis of the Causes of Weak Labour Productivity Growth in Canada since 2000," International Productivity Monitor, Centre for the Study of Living Standards, vol. 16, pages 14-39, Spring.
    3. Andrew Sharpe, 2010. "The Paradox of Market-Oriented Public Policy and Poor Productivity Growth in Canada," CSLS Research Reports 2010-01, Centre for the Study of Living Standards.
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