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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.

Suggested Citation

  • Tony Fisher & Doug Hostland, 2002. "The Long View: Labour Productivity, Labour Income and Living Standards in Canada," The Review of Economic Performance and Social Progress,in: Andrew Sharpe, Executive Director & France St-Hilaire, Vice-President , Research & Keith Banting, Di (ed.), The Review of Economic Performance and Social Progress 2002: Towards a Social Understanding of Productivity, volume 2 Centre for the Study of Living Standards;The Institutute for Research on Public Policy.
  • Handle: RePEc:sls:repsls:v:2:y:2002:tfdh

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    Cited by:

    1. Anna Sabadash, 2013. "ICT-induced Technological Progress and Employment: A Literature Review," JRC Working Papers on Digital Economy 2013-07, Joint Research Centre (Seville site).
    2. Anna Sabadash, 2013. "ICT-induced Technological Progress and Employment: a Happy Marriage or a Dangerous Liaison? A Literature Review," JRC Working Papers JRC76143, Joint Research Centre (Seville site).
    3. James Uguccioni, Andrew Sharpe and Alexander Murray, 2016. "Labour Productivity and the Distribution of Real Earnings in Canada, 1976 to 2014," CSLS Research Reports 2016-15, Centre for the Study of Living Standards.
    4. repec:sls:ipmsls:v:32:y:2017:2 is not listed on IDEAS

    More about this item


    Productivity; Labor Productivity; Labour Productivity; Growth; Wages; Income; Living Standards; Well-being; Wellbeing; Well Being; Long-run; Taxes; Labour Income; Labor Income; Non-labour Income; Non-labor Income; Business Income; Corporate Profits; Investment Income; Real Wage Growth;

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • N12 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - U.S.; Canada: 1913-
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution


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