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Understanding Productivity and Income Differentials Among OECD Countries: A Survey

In: The Review of Economic Performance and Social Progress 2002: Towards a Social Understanding of Productivity

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Author Info

  • Bart van Ark

    (Professor of Economics, University of Groningen)

Abstract

Productivity and income growth rates and differentials vary widely among OECD countries. In this chapter, Bart van Ark develops a framework for the understanding of these productivity and income differences. The framework breaks GDP per capita into two basic drivers: labour supply and labour productivity. Labour supply is in turn determined by the hours worked per person employed, the share of employment in the working age population, and the share of the working age population in the total population. Labour productivity is determined by within-industry productivity growth rates and inter-sectoral shifts in employment shares. The former is affected by the efficiency in factor use, that is total factor productivity, investment in physical capital, and investment in intangible capital.

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Bibliographic Info

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This chapter was published in:
This item is provided by Centre for the Study of Living Standards & The Institutute for Research on Public Policy in its series The Review of Economic Performance and Social Progress with number v:2:y:2002:bva.

Handle: RePEc:sls:repsls:v:2:y:2002:bva

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Related research

Keywords: Productivity; Labor Productivity; Labour Productivity; Growth; Level; Levels; Living Standards; ICT; Information; Communication; Technology; Canada; United States; European Union; Hours Worked; Average Hours; Knowledge; Knowledge Capital; Human Capital; Intangible Capital; Research; Development; Investment; Income; Income Differentials;

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Cited by:
  1. Bart van Ark & Charles R. Hulten, 2007. "Innovation, Intangibles and Economic Growth: Towards A Comprehensive Accounting of the Knowledge Economy," Economics Program Working Papers 07-02, The Conference Board, Economics Program.
  2. Chris Ross, 2011. "A Detailed Analysis of the Productivity Performance of the Canadian Food Manufacturing Subsector," CSLS Research Reports 2011-07, Centre for the Study of Living Standards.
  3. Bart van Ark & Robert Inklaar & Robert H. McGuckin, 2003. "The Contribution of ICT-Producing and ICT-Using Industries to Productivity Growth: A Comparison of Canada, Europe and the United States," International Productivity Monitor, Centre for the Study of Living Standards, vol. 6, pages 56-63, Spring.

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