IDEAS home Printed from
   My bibliography  Save this article

Sectoral Contributions to Labour Productivity Growth in Canada: Does the Choice of Decomposition Formula Matter?


  • Ricardo de Avillez



Using three decomposition formulas (TRAD, CSLS, and GEAD), this article estimates sectoral contributions to business sector labour productivity growth in Canada during the 2000-2010 period. Although at the aggregate economy level there was substantial agreement among the three formulas, contribution estimates varied widely at the sectoral level. In particular, there were significant differences in the estimated contributions of construction, manufacturing, and mining and oil and gas extraction. Ultimately, these differences reflect the fact that traditional decomposition formulas (TRAD and CSLS) and the GEAD formula measure different economic phenomena. Instead of seeing estimates constructed by the GEAD and traditional formulas as “competing” narratives, the article concludes it is more useful to see them as providing complementing stories about the role of different sectors in driving aggregate labour productivity growth.

Suggested Citation

  • Ricardo de Avillez, 2012. "Sectoral Contributions to Labour Productivity Growth in Canada: Does the Choice of Decomposition Formula Matter?," International Productivity Monitor, Centre for the Study of Living Standards, vol. 24, pages 97-117, Fall.
  • Handle: RePEc:sls:ipmsls:v:24:y:2012:9

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. 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.
    2. Whelan, Karl, 2002. "A Guide to U.S. Chain Aggregated NIPA Data," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 48(2), pages 217-233, June.
    3. William D. Nordhaus, 2000. "Alternative Methods for Measuring Productivity Growth," Cowles Foundation Discussion Papers 1282, Cowles Foundation for Research in Economics, Yale University.
    4. Diewert, Erwin, 2008. "On the Tang and Wang Decomposition of Labour Productivity Growth into Sectoral Effects," Economics working papers erwin_diewert-2008-6, Vancouver School of Economics, revised 16 Apr 2008.
    5. Baumol, William J & Blackman, Sue Anne Batey & Wolff, Edward N, 1985. "Unbalanced Growth Revisited: Asymptotic Stagnancy and New Evidence," American Economic Review, American Economic Association, vol. 75(4), pages 806-817, September.
    6. Jesus C. Dumagan, 2013. "A Generalized Exactly Additive Decomposition of Aggregate Labor Productivity Growth," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 59(1), pages 157-168, March.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sls:ipmsls:v:24:y:2012:9. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CSLS). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.