Template-Type: ReDIF-Article 1.0 Author-Name: Andrew Sharpe Author-Email: andrew.sharpe@csls.ca Title: Editor’s Overview Abstract: THIS 17TH ISSUE OF THE International Productivity Monitor published by the Centre for the Study of Living Standards contains six articles. Topics covered are the effect of labour market regulation on productivity in OECD countries; the relationship between the growth in labour productivity and real wages in Canada; the importance of higher education and market rigidities for the diffusion of information and communications technology (ICT) in OECD countries; the importance of the ICT-producing sector for productivity growth in Finland and Sweden; the appropriate measurement of total factor productivity (TFP) in unstable economies with an application to Argentina; and recent and proposed changes to US National Accounts. Classification-JEL: O31, Y2, L51, O47 Keywords: Productivity, Regulation, Real wages, ICT, TFP, National Accounts Journal: International Productivity Monitor Pages: 1-2 Volume: 17 Year: 2008 Month: Fall File-URL: http://www.csls.ca/ipm/17/IPM-17-editoroverview.pdf File-Format: Application/pdf Handle: RePEc:sls:ipmsls:v:17:y:2008:0 Template-type: ReDIF-Article 1.0 Author-Name: Andrea Bassanini Author-Name: Danielle Venn Title: The Impact of Labour Market Policies on Productivity in OECD Countries Abstract: We investigate the impact of labour market policies on labour and multifactor productivity with industry-level data. First and foremost, labour market policies can influence average measured productivity through their impact on employment. Other things equal, employment growth tends to be associated with lower average measured labour productivity growth as more low-skilled workers enter the workforce. However, policies can also have sizeable direct effects on individual productivity levels and/or growth by creating incentives for workers to invest in training, facilitating reallocation of resources to their most productive uses and generating or maintaining high-quality job matches. We find that employment protection legislation, minimum wages, parental leave and unemployment benefits influence productivity through multiple channels, over and above their impact on employment levels. Classification-JEL: P52, L51, O47, O11, O20, O38 Keywords: Regulation, Labour Market, Productivity, OECD Journal: International Productivity Monitor Pages: 3-15 Volume: 17 Year: 2008 Month: Fall File-URL: http://www.csls.ca/ipm/17/IPM-17-bassanini.pdf File-Format: Application/pdf Handle: RePEc:sls:ipmsls:v:17:y:2008:1 Template-type: ReDIF-Article 1.0 Author-Name: Andrew Sharpe Author-Email: andrew.sharpe@csls.ca Author-Name: Jean-Francois Arsenault Author-Email: jf.arsenault@csls.ca Author-Name: Peter Harrison Author-Email: peter.harrison@csls.ca Title: Why Have Real Wages Lagged Labour Productivity Growth in Canada? Abstract: The most direct mechanism by which labour productivity affects living standards is through real wages, that is, wages adjusted to reflect the cost of living. Between 1980 and 2005, the median real earnings of Canadians workers stagnated, while labour productivity rose 37 per cent. This article analyzes the reasons for this situation. It identifies four factors of roughly equal importance: rising earning inequalities; falling terms of trade for labour; a decrease in labour’s share of GDP; and measurement issues. Classification-JEL: E20, E25, O51, O40, J38, J39 Keywords: Productivity, Real Wages, Earnings, Labour Share, Inequalities Journal: International Productivity Monitor Pages: 16-27 Volume: 17 Year: 2008 Month: Fall File-URL: http://www.csls.ca/ipm/17/IPM-17-sharpe.pdf File-Format: Application/pdf Handle: RePEc:sls:ipmsls:v:17:y:2008:2 Template-type: ReDIF-Article 1.0 Author-Name: Gilbert Cette Author-Name: Jimmy Lopez Title: What Explains the ICT Diffusion Gap Between the Major Industrialized Countries: An Empirical Analysis? Abstract: Over the last few years, a large body of literature has shown that the level of information and communications technology (ICT) diffusion, and, as a result, the favorable effects of this diffusion on productivity, differ greatly between the major advanced countries, with the United States the country where ICT diffusion is strongest. This study aims to explain empirically this gap. Annual macroeconomic panel data are used for the period 1981-2005 and cover eleven OECD countries: Austria, Denmark, Finland, France, Germany, Italy, Japan, the Netherlands, Spain, the United Kingdom and the United States. The estimates obtained provide insight into the factors determining ICT diffusion and the gaps in this diffusion vis-à- vis the United-States. Compared to the United States, the lower ICT diffusion in the other major advanced countries can be explained by a smaller share of the population with a higher education and/or a higher level of rigidity in labour and product markets. Classification-JEL: O47, O14, O11, E22, G11, O31, O33, O57 Keywords: ICT, Investment, OECD, Education, Diffusion, Rigidity, Labour market, Product Market Journal: International Productivity Monitor Pages: 28-39 Volume: 17 Year: 2008 Month: Fall File-URL: http://www.csls.ca/ipm/17/IPM-17-cette.pdf File-Format: Application/pdf Handle: RePEc:sls:ipmsls:v:17:y:2008:3 Template-type: ReDIF-Article 1.0 Author-Name: Daniel Lind Title: ICT Production and Productivity in Sweden and Finland, 1975-2004 Abstract: This article compares the development of labour productivity in the Swedish and the Finnish business sectors and the role of the information and communication technology (ICT) sector in this process. The results show that the Finnish productivity level has been converging towards the Swedish level, but that there is still a significant difference. This trend has coincided with the growing importance of the ICT sector, especially since the mid 1990s. Due to higher productivity and employment growth, the Finnish ICT sector has contributed to this convergence. This is explained by the electrical engineering industry. The Nokia effect has been stronger than the Ericsson effect. Classification-JEL: O47, O57 Keywords: Productivity, Convergence, Finland, Sweden, ICT production Journal: International Productivity Monitor Pages: 40-51 Volume: 17 Year: 2008 Month: Fall File-URL: http://www.csls.ca/ipm/17/IPM-17-lind.pdf File-Format: Application/pdf Handle: RePEc:sls:ipmsls:v:17:y:2008:4 Template-type: ReDIF-Article 1.0 Author-Name: Ariel Coremberg Title: The Measurement of TFP in Argentina, 1990-2004: A Case of the Tyranny of Numbers, Economic Cycles and Methodology Abstract: The aim of this study is to examine the main sources of growth in Argentina for the period 1990-2004 in order to identify the dominant growth profile: either extensive, which is associated with factor accumulation and utilisation, or intensive, which is based on productivity gains. The study proposes a methodology for identifying gains in total factor productivity (TFP) net of short-run fluctuations in relative prices and cyclical changes in factor utilisation. When applying this methodology to Argentina in the period 1990-2004, we find that economic growth appears to be extensive during the whole period, biased towards capital accumulation and utilisation during the 1990s and biased towards labour input after the 2002 devaluation. These results raise doubts as to whether the Argentine economy is able to generate long-run productivity gains independent of composition and quality effects and cyclical changes in factors utilisation, gains that are needed to achieve sustainable long-run growth. Classification-JEL: O47, O54 Keywords: TFP, Measurement, business cycles, Cyclicality Journal: International Productivity Monitor Pages: 52-74 Volume: 17 Year: 2008 Month: Fall File-URL: http://www.csls.ca/ipm/17/IPM-17-coremberg.pdf File-Format: Application/pdf Handle: RePEc:sls:ipmsls:v:17:y:2008:5 Template-type: ReDIF-Article 1.0 Author-Name: Jean-Pierre Villetelle Title: Improving US National Accounts Integration and Consistency: A Review Article on A New Architecture for the U.S. National Accounts Abstract: The review article first presents a brief overview of each chapter, focusing on the main contributions of the respective authors. This does not fully do justice to their work since these chapters include much more than can be considered here, but it will provide a useful summary of the main topics addressed idea of the various sections of the book. We then single out and discuss some of the most important implications of these new developments from the point of view of data users. Classification-JEL: Y3,O47 Keywords: Review, National Accounts, United States Journal: International Productivity Monitor Pages: 75-80 Volume: 17 Year: 2008 Month: Fall File-URL: http://www.csls.ca/ipm/17/IPM-17-villetelle.pdf File-Format: Application/pdf Handle: RePEc:sls:ipmsls:v:17:y:2008:6