Productivity Trends in the Construction Sector in Canada: A Case of Lagging Technical Progress

Download full PDF article

Abstract

This article documents the poor productivity performance of Canada’s construction sector since the early 1980s, with real output per hour in 2000 well below early-1980s levels despite improvements in capital per worker and workforce educational attainment. The sector’s structural characteristics—geographical dispersion, heterogeneous output, on-site construction, high regulation, ease of entry, and cyclical activity—are identified as key explanations for its inability to adopt productivity-enhancing technologies. The article argues that lagging technical progress is the fundamental cause.

Download full PDF