Productivity Growth in Services Industries: Is There a Role for Measurement?
Productivity growth has tended to be slower in service industries than in goods industries. Anita Wölfl of the OECD finds that measurement error may be responsible for slower productivity growth in the service sector. She notes that some service industries in certain OECD countries have experienced negative productivity growth over long periods, despite intensive use of Information and COmmunication Technologies (ICTs), exposure to international competition, and the existence of economies of scale. Wölfl discusses the several possible sources of measurement error that may lead to this unexpected result and quantifies the impact of correcting for measurement errors on aggregate productivity growth.
Volume (Year): 8 (2004)
Issue (Month): (Spring)
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- Nadim Ahmad & François Lequiller & Pascal Marianna & Dirk Pilat & Paul Schreyer & Anita Wölfl, 2003.
"Comparing Labour Productivity Growth in the OECD Area: The Role of Measurement,"
OECD Statistics Working Papers
2003/5, OECD Publishing.
- Nadim Ahmad & François Lequiller & Pascal Marianna & Dirk Pilat & Paul Schreyer & Anita Wölfl, 2003. "Comparing Labour Productivity Growth in the OECD Area: The Role of Measurement," OECD Science, Technology and Industry Working Papers 2003/14, OECD Publishing.
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"Decomposition of Productivity and Unit Costs,"
American Economic Review,
American Economic Association, vol. 89(2), pages 328-332, May.
- Martin Neil Baily & Robert J. Gordon, 1988. "The Productivity Slowdown, Measurement Issues, and the Explosion of Computer Power," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 19(2), pages 347-432.
- Anita Wölfl, 2003. "Productivity Growth in Service Industries: An Assessment of Recent Patterns and the Role of Measurement," OECD Science, Technology and Industry Working Papers 2003/7, OECD Publishing.
- Someshwar Rao & Andrew Sharpe & Jianmin Tang, 2004. "Productivity Growth in Service Industries: A Canadian Success Story," CSLS Research Reports 2004-01, Centre for the Study of Living Standards.
- Baumol, William J, 1972. "Macroeconomics of Unbalanced Growth: Reply," American Economic Review, American Economic Association, vol. 62(1), pages 150, March.
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