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Sluggish Productivity Growth in Denmark: The Usual Suspects?


  • Muge Adalet McGowan


  • Stéphanie Jamet



Despite sound policies and institutions, Danish productivity has grown modestly over the past decade, both historically and in relation to other countries, contributing to weak economic growth and an erosion in competitiveness. An examination of the four potential drivers of this puzzle, namely competition, education, labour market flexibility and the size of the public sector, shows that there is room for improvement in all areas, calling for action on each of these fronts. This Working Paper relates to the 2012 OECD Economic Survey of Denmark ( Croissance de la productivité anémique du Danemark : les suspects habituels ? Malgré des politiques et institutions saines, la productivité danoise a connu une croissance modeste au cours de la dernière décennie, à la fois historiquement et par rapport à d'autres pays. Celle-ci a contribué à une croissance économique faible et une érosion de la compétitivité. L'analyse de quatre facteurs potentiels de ce puzzle, à savoir la concurrence, l'éducation, la flexibilité du marché du travail et la taille du secteur public, montre que des améliorations sont possibles dans tous ces domaines, appelant à des actions sur chacun de ces fronts. Ce Document de travail se rapporte à l’Étude économique de l’OCDE du Danemark, 2012 (

Suggested Citation

  • Muge Adalet McGowan & Stéphanie Jamet, 2012. "Sluggish Productivity Growth in Denmark: The Usual Suspects?," OECD Economics Department Working Papers 975, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:975-en

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    Cited by:

    1. Strohmaier, R. & Rainer, A., 2016. "Studying general purpose technologies in a multi-sector framework: The case of ICT in Denmark," Structural Change and Economic Dynamics, Elsevier, vol. 36(C), pages 34-49.
    2. Strohmaier, Rita & Rainer, Andreas, 2013. "On the Eonomic Purpose of General Purpose Technologies: A Combined Classical and Evolutionary Framework," MPRA Paper 45964, University Library of Munich, Germany.

    More about this item


    competition; concurrence; croissance; Danemark; Denmark; education; employment; employment protection legislation; government size; growth; législation sur la protection de l'emploi; productivity; productivité; taille du gouvernement; éducation;

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J80 - Labor and Demographic Economics - - Labor Standards - - - General
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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