Sectoral Contributions to Labour Productivity Growth
Addressing Canada’s slow productivity growth has become a public policy priority. However, this paper argues that declines or slower growth in aggregate labour productivity should not automatically be interpreted as a deterioration in living standards. Improvements in an economy’s terms of trade als...
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| Main Author: | |
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| Format: | Article |
| Language: | English |
| Published: |
University of Calgary
2025-03-01
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| Series: | The School of Public Policy Publications |
| Online Access: | https://www.policyschool.ca/wp-content/uploads/2025/03/FP-11-LabProdGrowth-Final.pdf |
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| Summary: | Addressing Canada’s slow productivity growth has become a public policy priority. However, this paper argues that declines or slower growth in aggregate labour productivity should not automatically be interpreted as a deterioration in living standards. Improvements in an economy’s terms of trade also play a crucial role in advancing living standards. Low rates of productivity
growth may, in some cases, result from welfare-enhancing reallocations of labour into sectors with lower labour productivity. |
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| ISSN: | 2560-8312 2560-8320 |