"Losing ground" : Japanese labour productivity and unit laboour cost manufacturing in comparison to the U.S
AbstractThis paper looks at several measures of competitiveness for the Japanese manufacturing sector relative to the United States over the period 1980-2000. Using industry-specific unit-value ratios (UVRs) we show that labour productivity in Japanese manufacturing lags considerably behind the U.S. and that the Japanese position has worsened during the 1990s. In 2000, value added per hour worked in Japanese manufacturing stood at 72 percent of the U.S. level after peaking at 79 percent in 1991. Underneath this aggregate estimate though, there is a wide range of branch-specific labour productivity levels. Japanese manufacturing has also suffered from rising unit labour cost levels. The long-term trend of a strengthening yen has eroded Japanese cost competitiveness in nearly all branches between 1980 and 2000, although ULC levels have declined somewhat from 1995 onwards due to a more favourable exchange rate development and moderate wage growth in Japan. Still, in 2000 unit labour cost in Japanese manufacturing was still 27 percent above the U.S. level. In comparison, in 1980 Japanese unit labour cost stood at only 82 percent of the U.S. level.
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 InfoPaper provided by Groningen Growth and Development Centre, University of Groningen in its series GGDC Research Memorandum with number 200364.
Date of creation: 2003
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-08-31 (All new papers)
- NEP-IFN-2003-08-31 (International Finance)
- NEP-INO-2003-08-31 (Innovation)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Sean M. Dougherty & Robert Inklaar & Robert H. McGuckin & Bart van Ark, 2007.
"International Comparisons of R&D Expenditure: Does an R&D PPP Make a Difference?,"
NBER Working Papers
12829, National Bureau of Economic Research, Inc.
- Sean M. Dougherty & Robert Inklaar & Robert H. McGuckin & Bart van Ark, 2007. "International Comparisons of R&D Expenditure: Does an R&D PPP Make a Difference?," NBER Chapters, in: Hard-to-Measure Goods and Services: Essays in Honor of Zvi Griliches, pages 291-322 National Bureau of Economic Research, Inc.
- Sean M. Dougherty & Robert Inklaar & Robert H. McGuckin & Bart van Ark, 2003. "International Comparisons of R&D Expenditure: Does an R&D PPP make a difference?," Economics Program Working Papers 03-03, The Conference Board, Economics Program, revised Jun 2006.
- Deborah Aiken & Rolf Färe & Shawna Grosskopf & Carl Pasurka, 2009. "Pollution Abatement and Productivity Growth: Evidence from Germany, Japan, the Netherlands, and the United States," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 44(1), pages 11-28, September.
- Janet Ceglowski & Stephen Golub, 2011. "Does China Still Have a Labor Cost Advantage?," CESifo Working Paper Series 3579, CESifo Group Munich.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joke Bulthuis).
If references are entirely missing, you can add them using this form.