Bart van Ark () (University of Groningen and The Conference Board) Robert Inklaar () (University of Groningen and The Conference Board) Robert H. McGuckin (The Conference Board)
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In this paper we analyse labour productivity growth in 51 industries in European countries and the United States. Using shift-share techniques we identify the industries in which the U.S. is leading most strongly. With a detailed decomposition analysis we identify whether the sources of the U.S. advantage are due to faster productivity growth, higher industry productivity levels relative to the country aggregate, different employment shares or faster change in employment shares of rapidly growing industries. The results show that U.S. productivity has grown faster than in the EU because of a larger employment share in the ICT producing sector and faster productivity growth in services industries that make intensive use of ICT. Wholesale and retail trade and the financial securities industry account for most of the difference in aggregate productivity growth between the EU and the U.S.
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Length: 15 pages Date of creation: Oct 2003 Date of revision: Publication status: Published in CESifo Economic Studies, Vol. 49, 3/2003, pp. 295-318. Handle: RePEc:cnf:wpaper:0305
Find related papers by JEL classification: N10 - Economic History - - Macroeconomics and Monetary Economics; Growth and Fluctuations - - - General, International, or Comparative O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
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