Template-type: ReDIF-Article 1.0 Author-Name: Andrew Sharpe Author-Email: andrew.sharpe@csls.ca Title: Editor’s Overview Abstract: This eleventh issue of the International Productivity Monitor, published by the Centre for the Study of Living Standards, contains seven articles on a range of topics: policies to improve productivity growth in Canada; the causes of lower information and communications technology investment in Canada relative to the United States; the impact of fiscal policy on employment and productivity; productivity growth in manufacturing in Sweden, and service sector productivity measurement. Classification-JEL: O47, O51, O32, L80, C82, I30, O12 Keywords: Canada, United States, Productivity, Labour Productivity, Productivity Growth, Education, Information and Communication Technology, Sweden, Service Sector, Services Sector, Fiscal Policy, Employment, Investment Gap, Productivity Gap Journal: International Productivity Monitor Pages: 1-2 Volume: 11 Year: 2005 Month: Fall File-URL: http://www.csls.ca/ipm/11/IPM-11-editors-overview.pdf File-Format: Application/pdf File-URL: http://www.csls.ca/ipm/11/IPM-11-mot-du-redacteur.pdf File-Function: version en français File-Format: Application/pdf Handle: RePEc:sls:ipmsls:v:11:y:2005:0 Template-type: ReDIF-Article 1.0 Author-Name: Pierre Fortin Author-Email: fortin.pierre@uqam.ca Title: From Productivity to Well-Being: Keep the Focus on Basic Skills Abstract: The author argues that productivity should be raised by bringing the low productivity segment of the workforce closer to the median. Consequently, he argues that the most pressing task for Canadians is to foster basic skills, reduce the high school dropout rate, and raise the profile of community colleges and CEGEPS. Classification-JEL: O47, O51, C82, D24, I28, J24 Keywords: Productivity, Canada, Quebec, Labour Productivity, Skills, High School, Drop Out, Colleges, CEGEP, Basic Skills, Workforce Journal: International Productivity Monitor Pages: 3-6 Volume: 11 Year: 2005 Month: Fall File-URL: http://www.csls.ca/ipm/11/IPM-11-fortin-e.pdf File-Format: Application/pdf File-URL: http://www.csls.ca/ipm/11/IPM-11-fortin-f.pdf File-Function: version en français File-Format: Application/pdf Handle: RePEc:sls:ipmsls:v:11:y:2005:1 Template-type: ReDIF-Article 1.0 Author-Name: Andrew Jackson Title: Productivity and Building Human Capital for the "Bottom Third" Abstract: This paper argues that a focus on the human capital needs of the bottom third of the workforce is the most effective way to boost productivity, while at the same time creating a more equitable labour market. Given the unmet demand for adult learning on the part of the disadvantaged, he proposes a scheme for paid training leave funded through Employment Insurance. Classification-JEL: O47, J24, D24, O51, O57 Keywords: Labour Productivity, Productivity, Productivity Growth, Employment Insurance, Equity, Training Journal: International Productivity Monitor Pages: 7-13 Volume: 11 Year: 2005 Month: Fall File-URL: http://www.csls.ca/ipm/11/IPM-11-jackson-e.pdf File-Format: Application/pdf File-URL: http://www.csls.ca/ipm/11/IPM-11-jackson-f.pdf File-Function: version en français File-Format: Application/pdf Handle: RePEc:sls:ipmsls:v:11:y:2005:2 Template-type: ReDIF-Article 1.0 Author-Name: James Milway Title: Fixing Fiscal Federalism to Improve Canada’s Productivity Performance Abstract: Canada’s current system of fiscal federalism, which results in very large transfers of resources from have provinces to have-not provinces, promotes consumption over investment and hence does not maximize our productivity potential. The author recommends reform of Employment Insurance towards a true insurance program with the elimination of the interprovincial social transfer aspects of the program, and a shift in the tax system from business income to consumption by reducing corporate taxes and raising the Goods and Services Tax. Classification-JEL: O47, H20, H77, H55, J65 Keywords: Productivity, Tax, Employment Insurance, Unemployment Insurance, Fiscal Federalism, Federalism, Transfers Journal: International Productivity Monitor Pages: 11-20 Volume: 11 Year: 2005 Month: Fall File-URL: http://www.csls.ca/ipm/11/IPM-11-milway-e.pdf File-Format: Application/pdf File-URL: http://www.csls.ca/ipm/11/IPM-11-milway-f.pdf File-Function: version en français File-Format: Application/pdf Handle: RePEc:sls:ipmsls:v:11:y:2005:3 Template-type: ReDIF-Article 1.0 Author-Name: Andrew Sharpe Title: What Explains the Canada-US ICT Investment Gap? Abstract: It is widely recognized that machinery and equipment investment intensity is less in Canada than in the United States. What is less well know is that it is information and communications technology (ICT) investment that largely accounts for this gap. The author documents trends in ICT investment in both Canada and the United States and attempts to explain why ICT investment per worker in the Canadian business sector in 2004 was only 45 per cent of that in the US business sector. While no definitive explanation emerges, among the factors he identifies as playing a role are industrial structure, firm size distribution of employment, the price of labour compared to ICT investment goods, and the underestimation of ICT investment in official statistics. Classification-JEL: O47, O51, O57, E22, C82 Keywords: Productivity Growth, Productivity, Labour Productivity, Industrial Organization, United States, Canada, ICT, Information Technology, Information Communications Technology, Investment, Investment Gap Pages: 21-38 Volume: 11 Year: 2005 Month: Fall File-URL: http://www.csls.ca/ipm/11/IPM-11-sharpe-e.pdf File-Format: Application/pdf File-URL: http://www.csls.ca/ipm/11/IPM-11-sharpe-f.pdf File-Function: version en français File-Format: Application/pdf Handle: RePEc:sls:ipmsls:v:11:y:2005:4 Template-type: ReDIF-Article 1.0 Author-Name: William Scarth Title: Fiscal Policy Can Raise Both Employment and Productivity Abstract: According to the conventional wisdom, we face a trade-off between our equity and efficiency objectives. The author challenges this proposition. He shows in a rigorous manner that employment subsidies can indeed lead to lower unemployment and higher productivity growth in a standard economic model. This finding is particularly timely given the announcement by the Canadian government in the November 2005 Economic and Fiscal Update of a Working Income Tax Benefit. The author approvingly notes that this initiative suggests that the government may be starting to appreciate the pro-growth benefits of simultaneously addressing structural unemployment and inequality. Classification-JEL: O51, O47, E24, H23, J68, J38 Keywords: Productivity, Productivity Growth, Equity, Efficicency, Fiscal Policy, Employment Subsidies, Unemployment, Employment, Working Income Tax Benefit, Economic and Fiscal Update, Canada, Inequality, Structural Unemployment Journal: International Productivity Monitor Pages: 39-46 Volume: 11 Year: 2005 Month: Fall File-URL: http://www.csls.ca/ipm/11/IPM-11-scarth-e.pdf File-Format: Application/pdf File-URL: http://www.csls.ca/ipm/11/IPM-11-scarth-f.pdf File-Function: version en français File-Format: Application/pdf Handle: RePEc:sls:ipmsls:v:11:y:2005:5 Template-type: ReDIF-Article 1.0 Author-Name: Daniel Lind Title: Manufacturing Productivity in Sweden: an International Perspective Since 1960 Abstract: Since 1990, the Swedish manufacturing sector has enjoyed the fastest labour productivity growth among the 12 OECD countries for which US Bureau of Labor Statistics data are published. The author provides an analysis of the factors behind this exemplary performance, finding that most of it was due to the radio, television and communication equipment industry, and in particular to one company in the sector, Ericsson. Classification-JEL: O52, L63, L60, Keywords: Productivity, Sweden, Ericsson, Manufacturing, Television and Communication Equipment, Labour Productivity, Labor Productivity Journal: International Productivity Monitor Pages: 47-56 Volume: 11 Year: 2005 Month: Fall File-URL: http://www.csls.ca/ipm/11/IPM-11-lind-e.pdf File-Format: Application/pdf File-URL: http://www.csls.ca/ipm/11/IPM-11-lind-f.pdf File-Function: version en français File-Format: Application/pdf Handle: RePEc:sls:ipmsls:v:11:y:2005:6 Template-type: ReDIF-Article 1.0 Author-Name: Erwin Diewert Title: Progress in Service Sector Productivity Measurement: Review Article on "Productivity in the U.S. Services Sector: New Sources of Economic Growth". Abstract: Measurement of productivity in the service sector has always represented a challenge for economists. "Productivity in the U.S. Services Sector: New Sources of Economic Growth", by Jack Triplett and Barry Bosworth from the Brookings Institution is reviewed. The authors have produced a textbook on the different types of measurement error that will force economists to take their empirical estimates with a considerable dose of caution. Both economic statisticians and policy makers will find the book invaluable. Classification-JEL: C13, O47, L80 Keywords: Productivity, United States, Services Sector, Service Sector, Jack Triplett, Triplett, Bosworth, Barry Bosworth, Brookings, Brookings Institution, Estimation, Statistics, Economic Statisticians, Measurement Error, Measurement, Growth, Economic Growth Journal: International Productivity Monitor Pages: 57-69 Volume: 11 Year: 2005 Month: Fall File-URL: http://www.csls.ca/ipm/11/IPM-11-diewert-review-e.pdf File-Format: Application/pdf File-URL: http://www.csls.ca/ipm/11/IPM-11-diewert-review-f.pdf File-Function: version en français File-Format: Application/pdf Handle: RePEc:sls:ipmsls:v:11:y:2005:7