Recent Productivity Developments in the United States and Canada: Implications for the Canada-U.S. Productivity and Income Gaps

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Abstract

This article examines aggregate labour productivity trends in the United States and Canada in 2001, assessing whether the U.S. productivity acceleration of 1995–2000 represents a permanent structural shift. It finds that despite a cyclical slowdown in 2001, U.S. productivity held up better than in previous downturns, supporting the structural shift thesis. In Canada, labour productivity growth also slowed in 2001, and the article discusses the implications of these trends for the Canada-U.S. productivity and income gaps, which widened considerably during the 1990s.

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