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Productivity Trends in the Construction Sector in Canada: A Case of Lagging Technical Progress

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Author Info
Andrew Sharpe ()
Abstract

The productivity performance of the construction sector in Canada over the last quarter century has been dismal, with output per hour lower in 2000 than in 1977. In this article Andrew Sharpe from the Centre for the Study of Living Standards examines productivity trends in this sector and discusses possible factors behind this situation. He notes that two drivers of productivity growth, capital per worker and the skills level of the workforce as represented by educational attainment, have improved markedly in the construction sector in recent years. He explains the stagnation of labour productivity growth despite these favourable trends by a lack of technical progress in the construction sector and, to a lesser extent, measurement problems which underestimate productivity growth.

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File URL: http://www.csls.ca/ipm/3/sharpe-f.pdf
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Publisher Info
Article provided by Centre for the Study of Living Standards in its journal International Productivity Monitor.

Volume (Year): 3 (2001)
Issue (Month): (Fall)
Pages: 52-68
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Handle: RePEc:sls:ipmsls:v:3:y:2001:5

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Related research
Keywords: Construction; Construction Sector; Canada; Trends; Productivity; Productivity Drivers; Drivers; Capital; Skill; Education; Improvement; Technical Progress; Measurement; Output; Employment; Growth; Labor Productivity; Labour; TFP; Total Factor Productivity; Aggregate Demand; Measurement; Measurement Errors; Capital-Labor Ratio;

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Find related papers by JEL classification:
C80 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - General
D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
L74 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Construction
O14 - Economic Development, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

References listed on IDEAS
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  1. Timothy C. Sargent & Edgard R. Rodriguez, 2000. "Labour or Total Factor Productivity: Do We Need to Choose?," International Productivity Monitor, Centre for the Study of Living Standards, vol. 1, pages 41-44, Fall. [Downloadable!]
    Other versions:
  2. Allen, Steven G, 1985. "Why Construction Industry Productivity Is Declining," The Review of Economics and Statistics, MIT Press, vol. 67(4), pages 661-69, November. [Downloadable!] (restricted)
    Other versions:
  3. Richard G. Lipsey & Kenneth Carlaw, 2000. "What Does Total Factor Productivity Measure?," International Productivity Monitor, Centre for the Study of Living Standards, vol. 1, pages 31-40, Fall. [Downloadable!]
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This page was last updated on 2009-12-2.

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