The objective of the second issue of the Review of Economic Performance and Social Progress is to attempt to fill, at least in part, the lacuna in the literature in Canada on this two-way relationship between productivity and various aspects of social progress. The 15 papers in this volume (including the introduction) address the general issue of the linkages between productivity and various aspects of social progress. The papers are organized into five sections. The three papers in the first section discuss productivity concepts and trends in Canada and OECD countries. The two papers in the second section examine the impact productivity has on government balances and natural resources and environmental sustainability. In the third section, four papers explore the relationships between population, education, health and social divergence and productivity. In the fourth section, three papers address the theme of whether productivity should be a social priority, including discussion of the attitudes of Canadians to productivity. In the fifth and final section two papers examine the relationship between social policy, inequality and productivity.
The purpose of this introduction is twofold. First, it provides a detailed overview of the main findings of all chapters in the volume. Second, it provides a synthesis of what the editors see as the main themes that emerge from the different chapters, including a discussion of the implications for public policy. Classification-JEL: O51, J24, E66, Z13, I18, Q32, E61 Keywords: Productivity, Labour Productivity, Labor Productivity, Total Factor Productivity, Multifactor Productivity, Multi-factor Productivity, Growth, Well-being, Wellbeing, Well Being, Welfare, Quality of Life, Standard of Living, Sustainability, Policy, Government, Canada, United States, Income, Investment, Human Capital, Social Capital, Social Policy, Equity, Efficiency, Cohesion, Innovation, Social Policy, Spending, Expenditure, Happiness, Equality, Health, Education Book-Title: The Review of Economic Performance and Social Progress 2002: Towards a Social Understanding of Productivity In-Book: RePEc:sls:repsls:rep2002 Provider-Name: Centre for the Study of Living Standards Provider-Email: info@csls.ca Provider-Homepage: http://www.csls.ca/ Provider-Postal: 111 Sparks Street, Ste. 500, Ottawa, ON K1P 5B5 Provider-Name: The Institutute for Research on Public Policy Provider-Homepage: http://www.irpp.org/ Provider-Postal: 1470 Peel Street, Suite 200, Montreal, QC H3A 1T1 Editor-Name: Andrew Sharpe, Executive Director Editor-Email: andrew.sharpe@csls.ca Editor-Workplace-Name: Centre for the Study of Living Standards Editor-Workplace-Homepage: http://www.csls.ca/ Editor-Name: France St-Hilaire, Vice-President , Research Editor-Workplace-Name: The Institutute for Research on Public Policy Editor-Workplace-Homepage: http://www.irpp.org/ Editor-Name: Keith Banting, Director Editor-Workplace-Name: School of Public Policy Studies, Queen’s University ISBN: 0-88645-198-1 Volume: 2 Year: 2002 File-URL: http://www.csls.ca/repsp/2/introduction.pdf File-Format: Application/pdf Handle: RePEc:sls:repsls:v:2:y:2002:int Template-type: ReDIF-Chapter 1.0 Author-Name: Andrew Sharpe Author-Email: andrew.sharpe@csls.ca Author-Workplace-Name: Executive Director, Centre for the Study of Living Standards Author-Workplace-Homepage: http://www.csls.ca/ Title: Productivity Concepts, Trends And Prospects: An Overview Abstract: In this chapter, Andrew Sharpe provides a comprehensive non-technical introduction to the productivity issue, including discussion of productivity concepts, measurement issues, trends and prospects. He begins by noting that productivity is the relationship between the output of goods and services and the inputs of resources, both human and non-human used in their production. The measurement of productivity is fraught with conceptual and empirical issues, meaning that there can be a significant margin of error associated with productivity growth rates, even at the aggregate level. Sharpe identifies two particularly important measurement problems, namely the estimation of real output in the non-market sector where output is not measured independently of inputs and the estimation of price indices (which are needed to calculate real output) for products where quality has improved significantly or for new products (e.g. computers).
According to Sharpe, the most important productivity trends that the general public should be aware of are: the post-1973 productivity slowdown; the postwar convergence in OECD productivity levels toward the US level; the post-1995 acceleration in labour productivity growth in the United States; the decline in Canada's relative international productivity ranking; and the widening of the Canada-US manufacturing productivity gap. Classification-JEL: O47, J24, D24, E24, O57 Keywords: Productivity, Labour Productivity, Labor Productivity, Growth, Wages, Well-being, Wellbeing, Well Being, Canada, United States, Total Factor Productivity, Multifactor Productivity, Multi-factor Productivity, Levels, Measurement, Post-1995, Acceleration, Revisions, Statistical Revision, Quality Adjustment, Unemployment Book-Title: The Review of Economic Performance and Social Progress 2002: Towards a Social Understanding of Productivity In-Book: RePEc:sls:repsls:rep2002 Provider-Name: Centre for the Study of Living Standards Provider-Email: info@csls.ca Provider-Homepage: http://www.csls.ca/ Provider-Postal: 111 Sparks Street, Ste. 500, Ottawa, ON K1P 5B5 Provider-Name: The Institutute for Research on Public Policy Provider-Homepage: http://www.irpp.org/ Provider-Postal: 1470 Peel Street, Suite 200, Montreal, QC H3A 1T1 Editor-Name: Andrew Sharpe, Executive Director Editor-Email: andrew.sharpe@csls.ca Editor-Workplace-Name: Centre for the Study of Living Standards Editor-Workplace-Homepage: http://www.csls.ca/ Editor-Name: France St-Hilaire, Vice-President , Research Editor-Workplace-Name: The Institutute for Research on Public Policy Editor-Workplace-Homepage: http://www.irpp.org/ Editor-Name: Keith Banting, Director Editor-Workplace-Name: School of Public Policy Studies, Queen’s University ISBN: 0-88645-198-1 Volume: 2 Year: 2002 File-URL: http://www.csls.ca/repsp/2/andrewsharpe.pdf File-Format: Application/pdf Handle: RePEc:sls:repsls:v:2:y:2002:as Template-type: ReDIF-Chapter 1.0 Author-Name: Tony Fisher Author-Workplace-Name: Economist, Economic Studies and Policy Analysis Branch of Finance Canada Author-Name: Doug Hostland Author-Workplace-Name: Economist, International Department of the Bank of Canada Title: The Long View: Labour Productivity, Labour Income and Living Standards in Canada Abstract: 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. Classification-JEL: O47, J24, N12, J31, E25 Keywords: 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 Book-Title: The Review of Economic Performance and Social Progress 2002: Towards a Social Understanding of Productivity In-Book: RePEc:sls:repsls:rep2002 Provider-Name: Centre for the Study of Living Standards Provider-Email: info@csls.ca Provider-Homepage: http://www.csls.ca/ Provider-Postal: 111 Sparks Street, Ste. 500, Ottawa, ON K1P 5B5 Provider-Name: The Institutute for Research on Public Policy Provider-Homepage: http://www.irpp.org/ Provider-Postal: 1470 Peel Street, Suite 200, Montreal, QC H3A 1T1 Editor-Name: Andrew Sharpe, Executive Director Editor-Email: andrew.sharpe@csls.ca Editor-Workplace-Name: Centre for the Study of Living Standards Editor-Workplace-Homepage: http://www.csls.ca/ Editor-Name: France St-Hilaire, Vice-President , Research Editor-Workplace-Name: The Institutute for Research on Public Policy Editor-Workplace-Homepage: http://www.irpp.org/ Editor-Name: Keith Banting, Director Editor-Workplace-Name: School of Public Policy Studies, Queen’s University ISBN: 0-88645-198-1 Volume: 2 Year: 2002 File-URL: http://www.csls.ca/repsp/2/fisherandhostland.pdf File-Format: Application/pdf Handle: RePEc:sls:repsls:v:2:y:2002:tfdh Template-type: ReDIF-Chapter 1.0 Author-Name: Bart van Ark Author-Workplace-Name: Professor of Economics, University of Groningen Title: Understanding Productivity and Income Differentials Among OECD Countries: A Survey Abstract: Productivity and income growth rates and differentials vary widely among OECD countries. In this chapter, Bart van Ark develops a framework for the understanding of these productivity and income differences. The framework breaks GDP per capita into two basic drivers: labour supply and labour productivity. Labour supply is in turn determined by the hours worked per person employed, the share of employment in the working age population, and the share of the working age population in the total population. Labour productivity is determined by within-industry productivity growth rates and inter-sectoral shifts in employment shares. The former is affected by the efficiency in factor use, that is total factor productivity, investment in physical capital, and investment in intangible capital. Classification-JEL: O47, J24, O57, O30 Keywords: Productivity, Labor Productivity, Labour Productivity, Growth, Level, Levels, Living Standards, ICT, Information, Communication, Technology, Canada, United States, European Union, Hours Worked, Average Hours, Knowledge, Knowledge Capital, Human Capital, Intangible Capital, Research, Development, Investment, Income, Income Differentials Book-Title: The Review of Economic Performance and Social Progress 2002: Towards a Social Understanding of Productivity In-Book: RePEc:sls:repsls:rep2002 Provider-Name: Centre for the Study of Living Standards Provider-Email: info@csls.ca Provider-Homepage: http://www.csls.ca/ Provider-Postal: 111 Sparks Street, Ste. 500, Ottawa, ON K1P 5B5 Provider-Name: The Institutute for Research on Public Policy Provider-Homepage: http://www.irpp.org/ Provider-Postal: 1470 Peel Street, Suite 200, Montreal, QC H3A 1T1 Editor-Name: Andrew Sharpe, Executive Director Editor-Email: andrew.sharpe@csls.ca Editor-Workplace-Name: Centre for the Study of Living Standards Editor-Workplace-Homepage: http://www.csls.ca/ Editor-Name: France St-Hilaire, Vice-President , Research Editor-Workplace-Name: The Institutute for Research on Public Policy Editor-Workplace-Homepage: http://www.irpp.org/ Editor-Name: Keith Banting, Director Editor-Workplace-Name: School of Public Policy Studies, Queen’s University ISBN: 0-88645-198-1 Volume: 2 Year: 2002 File-URL: http://www.csls.ca/repsp/2/bartvanark.pdf File-Format: Application/pdf Handle: RePEc:sls:repsls:v:2:y:2002:bva Template-type: ReDIF-Chapter 1.0 Author-Name: Peter Dungan Author-Workplace-Name: Adjunct Associate Professor, Department of Economics and Rotman School of Management at the University of Toronto Title: The Impact of Productivity Growth on Government Fiscal Balances Abstract: In this chapter, Peter Dungan investigates the sensitivity of Canadian government fiscal balances to alternative long-run productivity growth rates using elements of the FOCUS macroeconometric model to conduct simulations on a 'base-case' projection of the Canadian economy, and of its fiscal detail, through the year 2030. The simulation strategy employed here in part parallels the technique used by the Department of Finance in recent budgets and fiscal statements to estimate the implicit size of the 'fiscal dividend'. A total of five alternative growth paths and sensitivity tests are presented.
As Dungan points out changes in productivity growth rates can occur for a variety of reasons and can have many different possible effects on the economy. Therefore, these types of simulation exercises inevitably require a number of simplifying assumptions which must be taken into account in interpreting the results. Classification-JEL: E66, J24, E62 Keywords: Productivity, Fiscal Balances, Fiscal Policy, Revenues, Government Revenues, Taxes, Tax, Taxation, Social Programs, Social Spending, Social Policy, Expenditures, Government Expenditures, Government, Econometric Forecasting, Forecasting, FOCUS, Macroeconometric, Macro-econometric, Econometric Modeling Book-Title: The Review of Economic Performance and Social Progress 2002: Towards a Social Understanding of Productivity In-Book: RePEc:sls:repsls:rep2002 Provider-Name: Centre for the Study of Living Standards Provider-Email: info@csls.ca Provider-Homepage: http://www.csls.ca/ Provider-Postal: 111 Sparks Street, Ste. 500, Ottawa, ON K1P 5B5 Provider-Name: The Institutute for Research on Public Policy Provider-Homepage: http://www.irpp.org/ Provider-Postal: 1470 Peel Street, Suite 200, Montreal, QC H3A 1T1 Editor-Name: Andrew Sharpe, Executive Director Editor-Email: andrew.sharpe@csls.ca Editor-Workplace-Name: Centre for the Study of Living Standards Editor-Workplace-Homepage: http://www.csls.ca/ Editor-Name: France St-Hilaire, Vice-President , Research Editor-Workplace-Name: The Institutute for Research on Public Policy Editor-Workplace-Homepage: http://www.irpp.org/ Editor-Name: Keith Banting, Director Editor-Workplace-Name: School of Public Policy Studies, Queen’s University ISBN: 0-88645-198-1 Volume: 2 Year: 2002 File-URL: http://www.csls.ca/repsp/2/peterdungan.pdf File-Format: Application/pdf Handle: RePEc:sls:repsls:v:2:y:2002:pd Template-type: ReDIF-Chapter 1.0 Author-Name: Nancy Olewiler Author-Workplace-Name: Professor of Economics, Simon Fraser University Title: Natural Capital, Sustainability and Productivity: An Exploration of the Linkages Abstract: The issue of sustainability of natural capital and implications for economic growth ranks high in the interests of both policy makers and the general public, as manifested by the intense debate on Canada's ratification of the Kyoto accord. In this chapter, Nancy Olewiler makes an important contribution to the debate on natural resource sustainability by exploring the crucial, but often ignored, role of productivity in the maintenance of natural capital sustainability. Olewiler defines sustainability as the ability of the economy to maintain the flow of production necessary to ensure non-decreasing per capita consumption indefinitely, so future generations can have a standard of living equal to or better than that of the present generation. She makes a critical distinction between the concepts of strong and weak sustainability. Classification-JEL: Q32, Q31, Q21, O47, L72, L73, O30 Keywords: Natural Resources, Resources, Non-renewable, Renewable, Productivity, Sustainability, Growth, Labour Productivity, Labor Productivity, Technology, Technological Change, Environment, Environmental, Environmental Services, Multifactor Productivity, Multi-factor Productivity, Total Factor Productivity, Pollution, Emissions Book-Title: The Review of Economic Performance and Social Progress 2002: Towards a Social Understanding of Productivity In-Book: RePEc:sls:repsls:rep2002 Provider-Name: Centre for the Study of Living Standards Provider-Email: info@csls.ca Provider-Homepage: http://www.csls.ca/ Provider-Postal: 111 Sparks Street, Ste. 500, Ottawa, ON K1P 5B5 Provider-Name: The Institutute for Research on Public Policy Provider-Homepage: http://www.irpp.org/ Provider-Postal: 1470 Peel Street, Suite 200, Montreal, QC H3A 1T1 Editor-Name: Andrew Sharpe, Executive Director Editor-Email: andrew.sharpe@csls.ca Editor-Workplace-Name: Centre for the Study of Living Standards Editor-Workplace-Homepage: http://www.csls.ca/ Editor-Name: France St-Hilaire, Vice-President , Research Editor-Workplace-Name: The Institutute for Research on Public Policy Editor-Workplace-Homepage: http://www.irpp.org/ Editor-Name: Keith Banting, Director Editor-Workplace-Name: School of Public Policy Studies, Queen’s University ISBN: 0-88645-198-1 Volume: 2 Year: 2002 File-URL: http://www.csls.ca/repsp/2/nancyolewiler.pdf File-Format: Application/pdf Handle: RePEc:sls:repsls:v:2:y:2002:no Template-type: ReDIF-Chapter 1.0 Author-Name: William Scarth Author-Workplace-Name: Professor of Economics, McMaster University Title: Population Aging, Productivity, and Living Standards Abstract: In this chapter, William Scarth examines the relationship between population aging, productivity and growth in living standards and reaches a more optimistic conclusion about the effects of aging on productivity. Indeed, he finding that aging may in fact lead to increases in productivity, even if no policy initiative is taken. He argues that our economy possesses at least three adjustment mechanisms that insulate living standards from the adverse effects of an aging population. Classification-JEL: J11, J14, J24, J26, E66 Keywords: Aging, Ageing, Population Aging, Demography, Demographic Shift, Baby Boomers, Baby Boom, Dependence, Indebtedness, Debt, Investment, Productivity, Simulation, Growth, Consumption Book-Title: The Review of Economic Performance and Social Progress 2002: Towards a Social Understanding of Productivity In-Book: RePEc:sls:repsls:rep2002 Provider-Name: Centre for the Study of Living Standards Provider-Email: info@csls.ca Provider-Homepage: http://www.csls.ca/ Provider-Postal: 111 Sparks Street, Ste. 500, Ottawa, ON K1P 5B5 Provider-Name: The Institutute for Research on Public Policy Provider-Homepage: http://www.irpp.org/ Provider-Postal: 1470 Peel Street, Suite 200, Montreal, QC H3A 1T1 Editor-Name: Andrew Sharpe, Executive Director Editor-Email: andrew.sharpe@csls.ca Editor-Workplace-Name: Centre for the Study of Living Standards Editor-Workplace-Homepage: http://www.csls.ca/ Editor-Name: France St-Hilaire, Vice-President , Research Editor-Workplace-Name: The Institutute for Research on Public Policy Editor-Workplace-Homepage: http://www.irpp.org/ Editor-Name: Keith Banting, Director Editor-Workplace-Name: School of Public Policy Studies, Queen’s University ISBN: 0-88645-198-1 Volume: 2 Year: 2002 File-URL: http://www.csls.ca/repsp/2/williamscarth.pdf File-Format: Application/pdf Handle: RePEc:sls:repsls:v:2:y:2002:bs Template-type: ReDIF-Chapter 1.0 Author-Name: Arthur Sweetman Author-Workplace-Name: Assistant Professor, School of Policy Studies, Queen's University Title: Working Smarter: Education and Productivity Abstract: Skills, innovation and human capital as they feature prominently on the policy agenda of industrialized countries concerned with productivity and competitiveness issues. Not surprisingly, formal education is the preferred and most conventional policy instrument of governments in pursuing these objectives. Indeed, "more is better" is often the guiding principle here. The actual linkages, however, are not as straightforward as they may appear. Certainly, there are gains to be achieved through a better understanding of the relationship between the skills developed through formal education and their causal impact on productivity, as well as a more nuanced approach to policy in this area. In this chapter, Arthur Sweetman points out, "the issue is not whether education has benefits but, rather, the magnitude of its 'true' benefits, the benefits relative to costs, and the distribution of costs and benefits. Sweetman examines three different sets of evidence, focusing on the impact of education on earnings at the individual level and on productivity at the macroeconomic level, and on issues related to the operation of the Canadian educational system. Classification-JEL: J24, I21, I28 Keywords: Education, Skills, Growth, Productivity, Labour Productivity, Labor Productivity, Educational Attainment, Human Capital, Knowledge, Quality, Education Quality, Private Benefit, Social Benefit, Value, Investment Book-Title: The Review of Economic Performance and Social Progress 2002: Towards a Social Understanding of Productivity In-Book: RePEc:sls:repsls:rep2002 Provider-Name: Centre for the Study of Living Standards Provider-Email: info@csls.ca Provider-Homepage: http://www.csls.ca/ Provider-Postal: 111 Sparks Street, Ste. 500, Ottawa, ON K1P 5B5 Provider-Name: The Institutute for Research on Public Policy Provider-Homepage: http://www.irpp.org/ Provider-Postal: 1470 Peel Street, Suite 200, Montreal, QC H3A 1T1 Editor-Name: Andrew Sharpe, Executive Director Editor-Email: andrew.sharpe@csls.ca Editor-Workplace-Name: Centre for the Study of Living Standards Editor-Workplace-Homepage: http://www.csls.ca/ Editor-Name: France St-Hilaire, Vice-President , Research Editor-Workplace-Name: The Institutute for Research on Public Policy Editor-Workplace-Homepage: http://www.irpp.org/ Editor-Name: Keith Banting, Director Editor-Workplace-Name: School of Public Policy Studies, Queen’s University ISBN: 0-88645-198-1 Volume: 2 Year: 2002 File-URL: http://www.csls.ca/repsp/2/arthursweetman.pdf File-Format: Application/pdf Handle: RePEc:sls:repsls:v:2:y:2002:asweet Template-type: ReDIF-Chapter 1.0 Author-Name: Emile Tompa Author-Workplace-Name: Scientist at the Institute for Work and Health Title: The Impact of Health on Productivity: Macro and Microeconomic Evidence and Policy Implications Abstract: This chapter by Emile Tompa provides a comprehensive review of the theoretical underpinnings and empirical evidence of the health-productivity relationship with an emphasis on the public policy implications. This relationship goes well beyond the obvious effect of health on capacity to work both in terms of energy level and working time. Focusing on the Grossman model, the author describes three additional pathways through which health can affect productivity at an aggregate level. For instance, individuals with a longer life expectancy may choose to invest more in education as they receive greater returns from their investment. They may also be motivated to save more for retirement, which would lead to greater accumulation of physical capital. Finally, improvement in the survival and health of young children may provide incentives for reduced fertility and may result in increased labour-force participation. Classification-JEL: I18, I12, J24, I31 Keywords: Health, Safety, Human Capital, Nutrition, Longevity, Disability, Sickness, Productivity, Labour Productivity, Labor Productivity, Growth, Life Expectancy, Healthcare, Health Care, Health Spending, Investment, Childcare, Child Care Book-Title: The Review of Economic Performance and Social Progress 2002: Towards a Social Understanding of Productivity In-Book: RePEc:sls:repsls:rep2002 Provider-Name: Centre for the Study of Living Standards Provider-Email: info@csls.ca Provider-Homepage: http://www.csls.ca/ Provider-Postal: 111 Sparks Street, Ste. 500, Ottawa, ON K1P 5B5 Provider-Name: The Institutute for Research on Public Policy Provider-Homepage: http://www.irpp.org/ Provider-Postal: 1470 Peel Street, Suite 200, Montreal, QC H3A 1T1 Editor-Name: Andrew Sharpe, Executive Director Editor-Email: andrew.sharpe@csls.ca Editor-Workplace-Name: Centre for the Study of Living Standards Editor-Workplace-Homepage: http://www.csls.ca/ Editor-Name: France St-Hilaire, Vice-President , Research Editor-Workplace-Name: The Institutute for Research on Public Policy Editor-Workplace-Homepage: http://www.irpp.org/ Editor-Name: Keith Banting, Director Editor-Workplace-Name: School of Public Policy Studies, Queen’s University ISBN: 0-88645-198-1 Volume: 2 Year: 2002 File-URL: http://www.csls.ca/repsp/2/emiletompa.pdf File-Format: Application/pdf Handle: RePEc:sls:repsls:v:2:y:2002:et Template-type: ReDIF-Chapter 1.0 Author-Name: R. Quentin Grafton Author-Workplace-Name: Senior Fellow, Centre for Resource and Environmental Studies, Australian National University Author-Name: Stephen Knowles Author-Workplace-Name: Senior Lecturer in Economics, University of Otagio, New Zealand Author-Name: P. Dorian Owen Author-Workplace-Name: Professor of Economics, University of Otagio, New Zealand Title: Social Divergence and Productivity: Making a Connection Abstract: In this chapter, Quentin Grafton, Stephen Knowles and Dorian Owen examine the implications for productivity arising from the level of social diversity along a variety of dimensions, including ethnic, linguistic and religious differences and inequalities between rich and poor. Their basic intuition is that human beings tend to associate and communicate most readily with people similar to themselves, and their hypothesis is therefore that "social divergence" generates social barriers to communication among groups, inhibiting the diffusion of knowledge and lowering the level of productivity in the economy. As a consequence, the more diverse the society and the greater the number of distinct social groups, the higher are the communication costs and the greater are the barriers to the exchange of ideas and innovation. Classification-JEL: Z13, D24, J24, D63, J82 Keywords: Social Divergence, Social Values, Social Capital, Total Factor Productivity, Multifactor Productivity, Multi-factor Productivity, Fractionalization, Homogeneity, Heterogeneity, Productivity, Labour Productivity, Labor Productivity, Growth, Inequality, Educational Inequality, Networks, Trust, Social Networks, Language, Education, Religion, Social Cohesion, Cohesion Book-Title: The Review of Economic Performance and Social Progress 2002: Towards a Social Understanding of Productivity In-Book: RePEc:sls:repsls:rep2002 Provider-Name: Centre for the Study of Living Standards Provider-Email: info@csls.ca Provider-Homepage: http://www.csls.ca/ Provider-Postal: 111 Sparks Street, Ste. 500, Ottawa, ON K1P 5B5 Provider-Name: The Institutute for Research on Public Policy Provider-Homepage: http://www.irpp.org/ Provider-Postal: 1470 Peel Street, Suite 200, Montreal, QC H3A 1T1 Editor-Name: Andrew Sharpe, Executive Director Editor-Email: andrew.sharpe@csls.ca Editor-Workplace-Name: Centre for the Study of Living Standards Editor-Workplace-Homepage: http://www.csls.ca/ Editor-Name: France St-Hilaire, Vice-President , Research Editor-Workplace-Name: The Institutute for Research on Public Policy Editor-Workplace-Homepage: http://www.irpp.org/ Editor-Name: Keith Banting, Director Editor-Workplace-Name: School of Public Policy Studies, Queen’s University ISBN: 0-88645-198-1 Volume: 2 Year: 2002 File-URL: http://www.csls.ca/repsp/2/graftonetal.pdf File-Format: Application/pdf Handle: RePEc:sls:repsls:v:2:y:2002:rqg Template-type: ReDIF-Chapter 1.0 Author-Name: Joseph Heath Author-Workplace-Name: Canada Research Chair in Ethics and Political Economy, University of Montreal Title: Should Productivity Be a Social Priority? Abstract: In this chapter, Joseph Heath argues that we tend to overestimate the contribution that further productivity growth will make to the welfare of Canadians. Traditionally, productivity growth was thought to contribute to increased leisure time, greater consumer satisfaction, the elimination of poverty and greater public support for redistributive efforts to narrow social inequality. While accepting that such benefits have flowed in the past, Heath argues that in the last 25 years, productivity growth has contributed less and less to the well-being of Canadians. The key puzzle for Heath is why further economic growth does not lead to greater happiness. In attempting to solve this puzzle, he canvasses three currents of thought in the literature. One possible explanation is that increased consumption does not generate lasting increments in welfare because the process of satisfying our desires generates new desires. A second explanation, which Heath describes contends that consumption not only satisfies needs but also communicates status, class, upbringing and tastes. A third possible explanation draws on the work of Fred Hirsch, who argued that the supply of some goods such as waterfront property, which he labels positional goods, is fixed. Classification-JEL: J24, E61, H50, D63 Keywords: Social Priority, Productivity, Social, Labour Productivity, Labor Productivity, Growth, Free Lunch, Redistribution, Poverty, Consumption, Happiness, Competitive Consumption, Positional Goods, Externalities, Leisure, Welfare, Satisfaction, Living Standards, Quality of Life, Public Goods, Wants, Needs Book-Title: The Review of Economic Performance and Social Progress 2002: Towards a Social Understanding of Productivity In-Book: RePEc:sls:repsls:rep2002 Provider-Name: Centre for the Study of Living Standards Provider-Email: info@csls.ca Provider-Homepage: http://www.csls.ca/ Provider-Postal: 111 Sparks Street, Ste. 500, Ottawa, ON K1P 5B5 Provider-Name: The Institutute for Research on Public Policy Provider-Homepage: http://www.irpp.org/ Provider-Postal: 1470 Peel Street, Suite 200, Montreal, QC H3A 1T1 Editor-Name: Andrew Sharpe, Executive Director Editor-Email: andrew.sharpe@csls.ca Editor-Workplace-Name: Centre for the Study of Living Standards Editor-Workplace-Homepage: http://www.csls.ca/ Editor-Name: France St-Hilaire, Vice-President , Research Editor-Workplace-Name: The Institutute for Research on Public Policy Editor-Workplace-Homepage: http://www.irpp.org/ Editor-Name: Keith Banting, Director Editor-Workplace-Name: School of Public Policy Studies, Queen’s University ISBN: 0-88645-198-1 Volume: 2 Year: 2002 File-URL: http://www.csls.ca/repsp/2/josephheath.pdf File-Format: Application/pdf Handle: RePEc:sls:repsls:v:2:y:2002:jh Template-type: ReDIF-Chapter 1.0 Author-Name: Frank Graves Author-Workplace-Name: President, EKOS Research Associates Author-Name: Richard Jenkins Author-Workplace-Name: Senior Consultant, EKOS Research Associates Title: The Attitudes of Canadians to Productivity: Balancing Standard of Living and Quality of Life Abstract: In this chapter, Graves and Jenkins explore the attitudes of Canadians to productivity. The distinction between our standard of living and our quality of life is a powerful one for Canadians generally. The economic citizen who emerges from Graves and Jenkins data is relatively aware of the terms of the productivity debate. Canadians appear to have a broadly optimistic view of the economy, but give the country only a lukewarm overall rating of its productivity. Moreover, although improved productivity does not rank as highly as health care, education, the environment and crime prevention, the public does see it as an important goal, qualified by some scepticism. Nevertheless, the Canadian public's attitude towards productivity is qualified by a commitment to a broader sense of the quality of life. Graves and Jenkins report that Canadians place considerably higher emphasis on quality of life as a goal as compared with a high standard of living when these are traded off. This attitude also influences the public's reaction to policy debate about the productivity agenda. As well, in their words, "there is a significant gap in the understanding of how productivity should be dealt with between the residents of the boardrooms and the residents of the family rooms of Canada". Classification-JEL: O51, J24, E61, H50 Keywords: Government, Productivity, Growth, Labour Productivity, Labor Productivity, Living Standards, Quality of Life, Policy, Public Opinion, Innovation, Jobs, Employment, Unemployment, Investment Book-Title: The Review of Economic Performance and Social Progress 2002: Towards a Social Understanding of Productivity In-Book: RePEc:sls:repsls:rep2002 Provider-Name: Centre for the Study of Living Standards Provider-Email: info@csls.ca Provider-Homepage: http://www.csls.ca/ Provider-Postal: 111 Sparks Street, Ste. 500, Ottawa, ON K1P 5B5 Provider-Name: The Institutute for Research on Public Policy Provider-Homepage: http://www.irpp.org/ Provider-Postal: 1470 Peel Street, Suite 200, Montreal, QC H3A 1T1 Editor-Name: Andrew Sharpe, Executive Director Editor-Email: andrew.sharpe@csls.ca Editor-Workplace-Name: Centre for the Study of Living Standards Editor-Workplace-Homepage: http://www.csls.ca/ Editor-Name: France St-Hilaire, Vice-President , Research Editor-Workplace-Name: The Institutute for Research on Public Policy Editor-Workplace-Homepage: http://www.irpp.org/ Editor-Name: Keith Banting, Director Editor-Workplace-Name: School of Public Policy Studies, Queen’s University ISBN: 0-88645-198-1 Volume: 2 Year: 2002 File-URL: http://www.csls.ca/repsp/2/gravesand jenkins.pdf File-Format: Application/pdf Handle: RePEc:sls:repsls:v:2:y:2002:fgrj Template-type: ReDIF-Chapter 1.0 Author-Name: Janice Stein Author-Workplace-Name: Belzberg Professor, Department of Political Science, University of Toronto Title: Bad Translation or Double Standards? Productivity and Accountability Across the Private, Public and Voluntary Sectors Abstract: In this chapter by Janice Stein warns about the dangers of adopting a narrow conception of productivity and efficiency. Building on her analysis in The Cult of Efficiency, she argues that the language of efficiency, understood narrowly as cost-effectiveness, confronts distinctive problems when transferred from the private sector to the public and voluntary sectors. Determining the efficiency or productivity of a public service requires a measurement of the value or utility generated by the service. However, such measurements are much more difficult than in the private sector, where the feedback provided by the market provides as continuous measure of value. Stein contends that the collapse of the language of efficiency into mere cost-containment has ironically undermined the effectiveness and productivity of the public and voluntary sectors. She illustrates the perverse results along three dimensions: the inability to provide for unexpected contingencies; cuts in investment in research and development; and the problems in maintaining of full accountability. Classification-JEL: I18, L31, L33, L21, J24 Keywords: Volunteering, Volunteer, Voluntary, Voluntary Sector, Public Sector, Public Enterprises, Productivity, Efficiency, Accountability, Redundancy, Satisfaction, Hospitals, Healthcare, Health Care, Public Services, Research, Development, Innovation, Responsibility, Donors, Trust, Commitment, Social Capital Book-Title: The Review of Economic Performance and Social Progress 2002: Towards a Social Understanding of Productivity In-Book: RePEc:sls:repsls:rep2002 Provider-Name: Centre for the Study of Living Standards Provider-Email: info@csls.ca Provider-Homepage: http://www.csls.ca/ Provider-Postal: 111 Sparks Street, Ste. 500, Ottawa, ON K1P 5B5 Provider-Name: The Institutute for Research on Public Policy Provider-Homepage: http://www.irpp.org/ Provider-Postal: 1470 Peel Street, Suite 200, Montreal, QC H3A 1T1 Editor-Name: Andrew Sharpe, Executive Director Editor-Email: andrew.sharpe@csls.ca Editor-Workplace-Name: Centre for the Study of Living Standards Editor-Workplace-Homepage: http://www.csls.ca/ Editor-Name: France St-Hilaire, Vice-President , Research Editor-Workplace-Name: The Institutute for Research on Public Policy Editor-Workplace-Homepage: http://www.irpp.org/ Editor-Name: Keith Banting, Director Editor-Workplace-Name: School of Public Policy Studies, Queen’s University ISBN: 0-88645-198-1 Volume: 2 Year: 2002 File-URL: http://www.csls.ca/repsp/2/janicestein.pdf File-Format: Application/pdf Handle: RePEc:sls:repsls:v:2:y:2002:js Template-type: ReDIF-Chapter 1.0 Author-Name: Richard G. Harris Author-Workplace-Name: Telus Professor of Economics, Simon Fraser University and Fellow of the Canadian Institute of Advanced Research Title: Social Policy and Productivity Growth: What are the Linkages? Abstract: In this chapter, Richard Harris points out that a traditional view has been that there is an inherent conflict between economic efficiency and social equality, a view neatly summarized in the title of Okun's famous book, Equality and Efficiency: The Big Trade-off (1975). This view gained renewed currency in the policy debates of the 1990s, as commentators contrasted the economic performance of Europe and the U.S. in that decade. This view has been challenged both by cross-national empirical studies and by theoretical advances. Recent research seems to suggest that there is no efficiency-equity trade-off and that social policy and greater equality may actually contribute to higher productivity growth. Richard Harris surveys two streams of recent research that point in this direction. The chapter also examines new theoretical literature, especially the new endogenous growth theory that suggests that increases in inequality can hurt growth. Classification-JEL: O47, J24, I38, H51, H52, D63 Keywords: Equity, Efficiency, Productivity, Labour Productivity, Labor Productivity, Growth, Income, Inequality, Equality, Social Policy, Education, Health, Welfare, Redistribution, Social Cohesion, Cohesion, Investment, Innovation, Competition, Living Standards Book-Title: The Review of Economic Performance and Social Progress 2002: Towards a Social Understanding of Productivity In-Book: RePEc:sls:repsls:rep2002 Provider-Name: Centre for the Study of Living Standards Provider-Email: info@csls.ca Provider-Homepage: http://www.csls.ca/ Provider-Postal: 111 Sparks Street, Ste. 500, Ottawa, ON K1P 5B5 Provider-Name: The Institutute for Research on Public Policy Provider-Homepage: http://www.irpp.org/ Provider-Postal: 1470 Peel Street, Suite 200, Montreal, QC H3A 1T1 Editor-Name: Andrew Sharpe, Executive Director Editor-Email: andrew.sharpe@csls.ca Editor-Workplace-Name: Centre for the Study of Living Standards Editor-Workplace-Homepage: http://www.csls.ca/ Editor-Name: France St-Hilaire, Vice-President , Research Editor-Workplace-Name: The Institutute for Research on Public Policy Editor-Workplace-Homepage: http://www.irpp.org/ Editor-Name: Keith Banting, Director Editor-Workplace-Name: School of Public Policy Studies, Queen’s University ISBN: 0-88645-198-1 Volume: 2 Year: 2002 File-URL: http://www.csls.ca/repsp/2/richardharris.pdf File-Format: Application/pdf Handle: RePEc:sls:repsls:v:2:y:2002:rh Template-type: ReDIF-Chapter 1.0 Author-Name: William Watson Author-Workplace-Name: Economics Department, McGill University and Senior Research Fellow at the Institutute for Research on Public Policy Title: Social Policy and Productivity: Anybody Here See Any Levers? Abstract: In this chapter, William Watson challenges Heath's interpretation of the benefits of productivity growth, but agrees with Richard Harris' views on the state of our knowledge about the potential contribution of social programs to productivity growth. Watson tackles Heath's assessment of the social benefits of productivity growth directly, starting with the issues of social inequality and poverty. He argues that there has been no flagging in redistributive effort in Canada and he challenges what he sees as Heath's preference for enhancing public expenditures, emphasizing the scope for government failures and of the possibility that higher tax rates in the contemporary period have increased the marginal cost of public funds. Even if one were able to resolve the question of the appropriate balance between the public and private sectors, Watson believes that the case for higher productivity would remain compelling. Without powerful analytical guidance, Watson concludes that reform of social policy will inevitably be guided primarily by intuition, politics and hunches. In these circumstances, he counsels modesty in aspirations. Classification-JEL: O47, J24, I38, H51, H52, D63 Keywords: Equity, Efficiency, Productivity, Labour Productivity, Labor Productivity, Growth, Income, Inequality, Equality, Social Policy, Happiness, Poverty, Leisure, Government, Investment, Fairness, Spending, Government Spending, Government Expenditure, Expenditure, Taxes, Tax, Quality of Life Book-Title: The Review of Economic Performance and Social Progress 2002: Towards a Social Understanding of Productivity In-Book: RePEc:sls:repsls:rep2002 Provider-Name: Centre for the Study of Living Standards Provider-Email: info@csls.ca Provider-Homepage: http://www.csls.ca/ Provider-Postal: 111 Sparks Street, Ste. 500, Ottawa, ON K1P 5B5 Provider-Name: The Institutute for Research on Public Policy Provider-Homepage: http://www.irpp.org/ Provider-Postal: 1470 Peel Street, Suite 200, Montreal, QC H3A 1T1 Editor-Name: Andrew Sharpe, Executive Director Editor-Email: andrew.sharpe@csls.ca Editor-Workplace-Name: Centre for the Study of Living Standards Editor-Workplace-Homepage: http://www.csls.ca/ Editor-Name: France St-Hilaire, Vice-President , Research Editor-Workplace-Name: The Institutute for Research on Public Policy Editor-Workplace-Homepage: http://www.irpp.org/ Editor-Name: Keith Banting, Director Editor-Workplace-Name: School of Public Policy Studies, Queen’s University ISBN: 0-88645-198-1 Volume: 2 Year: 2002 File-URL: http://www.csls.ca/repsp/2/williamwatson.pdf File-Format: Application/pdf Handle: RePEc:sls:repsls:v:2:y:2002:ww