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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)

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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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This chapter was published in: Andrew Sharpe, Executive Director & France St-Hilaire, Vice-President , Research & Keith Banting, Director (ed.) The Review of Economic Performance and Social Progress 2002: Towards a Social Understanding of Productivity, Centre for the Study of Living Standards, pages , 2002.

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
This chapter was published in the following book, which is listed on IDEAS:

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;

Find related papers by JEL classification:
O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
O30 - Economic Development, Technological Change, and Growth - - Technological Change - - - General

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  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. [Downloadable!]
  2. Ýsmail Seki, 2008. "The Importance of ICT for the Knowledge Economy: A Total Factor Productivity Analysis for Selected OECD Countries," Papers of the Annual IUE-SUNY Cortland Conference in Economics, in: Proceedings of the Conference on Emerging Economic Issues in a Globalizing World, pages 72-90 Izmir University of Economics. [Downloadable!]
  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. [Downloadable!]
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