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The Long View: Labour Productivity, Labour Income and Living Standards in Canada

In: The Review of Economic Performance and Social Progress 2002: Towards a Social Understanding of Productivity

  • Tony Fisher

    (Economist, Economic Studies and Policy Analysis Branch of Finance Canada)

  • Doug Hostland

    (Economist, International Department of the Bank of Canada)

In this chapter, Tony Fisher and Doug Hostland provide an historical perspective on trends in labour productivity, labour income and living standards in Canada. They find that, once the appropriate adjustments are made, the labour share and the non-labour share (composed of profits, interest and investment income, and incorporated business income) in national income tend to revert to their historical means over the 1926-2001 historical period, although divergences may last for several years. They note, for example, that the decline in the labour share in Canada since 1994 has not been due to any increase in profit share, but to an increase in the share of depreciation or capital consumption allowances associated with the short services lives of high-tech investment goods.

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This item is provided by Centre for the Study of Living Standards & The Institutute for Research on Public Policy in its series The Review of Economic Performance and Social Progress with number v:2:y:2002:tfdh.
Handle: RePEc:sls:repsls:v:2:y:2002:tfdh
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