Recent Productivity Development in the United States and Canada: Implications for the Canada-U.S. Productivity and Income Gap
AbstractThe economic slowdown of 2001 reduced productivity growth in both the United States and Canada. This development has raised the question of the sustainability or permanency of the pace of productivity growth experienced during the 1995-2000 period in the United States and the likelihood of robust U.S. productivity growth spreading to Canada. In this article, Andrew Sharpe from the Centre for the Study of Living Standards compares productivity trends in the United States and Canada in 2001 to those during earlier postwar downturns and recessions. He finds that aggregate labour productivity growth held up better in 2001 in both countries than it did on average in the past, a development which may suggest an upward shift in trend productivity growth. Productivity growth in 2001 in the United States was faster than in Canada, as it was during the second half of the 1990s. This resulted in a further widening of the Canada-U.S. productivity gap and, since productivity is the key driver of income trends, in the income gap as well. If U.S. productivity growth continues at the pace experienced during the second half of the 1990s, as appears likely, Canada will need a major acceleration in productivity growth to prevent further deterioration in our relative productivity and income positions.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Centre for the Study of Living Standards in its journal International Productivity Monitor.
Volume (Year): 4 (2002)
Issue (Month): (Spring)
Find related papers by JEL classification:
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- O51 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Jeremy Smith, 2004. "Aggregate Labour Productivity Growth in Canada and the United States: Definitions, Trends and Measurement Issues," CSLS Research Reports 2004-04, Centre for the Study of Living Standards.
- Centre for the Study of Living Standards, 2002. "Raising Canadian Living Standards: A Framework for Discussion," CSLS Research Reports 02td, Centre for the Study of Living Standards.
- Andrew Sharpe, 2002. "Raising Canadian Living Standards: A Framework for Analysis," International Productivity Monitor, Centre for the Study of Living Standards, vol. 5, pages 23-40, Fall.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Whitney Hamilton) The email address of this maintainer does not seem to be valid anymore. Please ask Whitney Hamilton to update the entry or send us the correct address.
If references are entirely missing, you can add them using this form.