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Can Sectoral Reallocations of Labour Explain Canada’s Absymal Productivity Performance?

  • Andrew Sharpe

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    This report presents a framework for decomposing aggregate productivity growth into within-sector effects and sectoral reallocation effects. This framework is used to analyze productivity growth in 12 Canadian industries for the 1961-2007 period and for several subperiods. The results do not support the common view that Canada’s weak post-2000 productivity performance is attributable to a reallocation of labour toward mining, oil and gas, a sector with low productivity growth. Rather, it was the fall in labour productivity growth in manufacturing that accounted for all of the slowdown in business sector productivity growth after 2000.

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    File URL: http://www.csls.ca/ipm/19/IPM-19-sharpe.pdf
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    Article provided by Centre for the Study of Living Standards in its journal International Productivity Monitor.

    Volume (Year): 19 (2010)
    Issue (Month): (Spring)
    Pages: 40-49

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    Handle: RePEc:sls:ipmsls:v:19:y:2010:3
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    1. Andrew Sharpe, 2010. "The Paradox of Market-Oriented Public Policy and Poor Productivity Growth in Canada," CSLS Research Reports 2010-01, Centre for the Study of Living Standards.
    2. Jean-Francois Arsenault & Andrew Sharpe, 2008. "An Analysis of the Causes of Weak Labour Productivity Growth in Canada since 2000," International Productivity Monitor, Centre for the Study of Living Standards, vol. 16, pages 14-39, Spring.
    3. Jianmin Tang & Weimin Wang, 2004. "Sources of aggregate labour productivity growth in Canada and the United States," Canadian Journal of Economics, Canadian Economics Association, vol. 37(2), pages 421-444, May.
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