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Sources of aggregate labour productivity growth in Canada and the United States

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  • Jianmin Tang
  • Weimin Wang

Abstract

. In this paper we propose a decomposition technique to examine the sources of industrial contribution to aggregate labour productivity growth. We show that in terms of pure labour productivity growth, the manufacturing and service sectors contributed equally to the aggregate Canada‐U.S. labour productivity growth gap during the 1987–98 period. But, in terms of total industrial contributions, which also take into account the contributions from a change in relative size, the service sector was the largest contributor. We also find that high labour productivity growth industries did not attract resources from stagnant industries – a phenomenon consistent with Baumol's cost disease of stagnant industries. JEL Classification: O47, C43 Sources de la croissance de la productivité agrégée du travail au Canada et aux Etats‐Unis. Ce mémoire propose une technique de décomposition pour examiner les sources des diverses composantes de la croissance de la productivité agrégée du travail. On montre que, pour ce qui est de la croissance pure de la productivité du travail, les secteurs des produits manufacturiers et des services contribuent également à l’écart entre les croissances de la productivité agrégée du travail au Canada et aux Etats‐Unis pour la période 1987–98. Mais pour ce qui est des contributions totales des secteurs, qui tiennent compte aussi du changement dans la taille relative des secteurs, il est clair que le secteur des service est celui qui contribue davantage. On trouve aussi que les industries à haute productivité du travail n’attirent pas les ressources des industrie stagnantes – un phénomène qui est compatible avec la proposition à propos de la maladie des coûts des industries stagnantes soulignée par Baumol.

Suggested Citation

  • Jianmin Tang & Weimin Wang, 2004. "Sources of aggregate labour productivity growth in Canada and the United States," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 37(2), pages 421-444, May.
  • Handle: RePEc:wly:canjec:v:37:y:2004:i:2:p:421-444
    DOI: 10.1111/j.0008-4085.2004.00009.x
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    References listed on IDEAS

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    1. William D. Nordhaus, 2002. "Productivity Growth and the New Economy," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 33(2), pages 211-265.
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    8. Someshwar Rao & Jianmin Tang, 2001. "The Contribution of ICTs to Productivity Growth in Canada and the United States in the 1990s," International Productivity Monitor, Centre for the Study of Living Standards, vol. 3, pages 3-18, Fall.
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    More about this item

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation

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