--- canonical_url: "https://csls.ca/research/the-relationship-between-productivity-and-real-wage-growth-in-canada-and-oecd-countries/" title: "The Relationship between Labour Productivity and Real Wage Growth in Canada and OECD Countries" author: name: "CSLS" url: "https://csls.ca/author/cslc/" date_published: "2026-07-02T13:37:42+00:00" date_modified: "2026-07-07T08:15:11+00:00" post_type: "research" summary: "" post_tag: - "Canada" - "GDP" - "inequality" - "labour productivity" - "labour share" - "measurement" - "OECD" - "provinces" - "real wages" - "wages" country_focus: - "Canada" - "OECD" province_region: - "National" research_theme: - "Labour Markets" - "Productivity and Economic Measurement" featured_image: "https://csls.ca/wp-content/uploads/2026/07/old-reports_hero_banner_bg.webp" status: "publish" --- # The Relationship between Labour Productivity and Real Wage Growth in Canada and OECD Countries Canonical URL: https://csls.ca/research/the-relationship-between-productivity-and-real-wage-growth-in-canada-and-oecd-countries/ # The Relationship between Labour Productivity and Real Wage Growth in Canada and OECD Countries [Download full PDF report](https://csls.ca/pdf/csls2008-08.pdf) Cite this report × Cite this report as: Sharpe, Andrew, Jean-François Arsenault, and Peter Harrison. 2008. “The Relationship between Productivity and Real Wage Growth in Canada and OECD Countries.” CSLS Research Report 2008-08. Ottawa: Centre for the Study of Living Standards. https://csls.ca/research/the-relationship-between-productivity-and-real-wage-growth-in-canada-and-oecd-countries/ ## Authors: - Andrew Sharpe Centre for the Study of Living Standards (CSLS) - Jean-François Arsenault Centre for the Study of Living Standards (CSLS) - Peter Harrison Centre for the Study of Living Standards (CSLS) ## Report 2008-08 December 2008 87 pages ## Related research [Living Standards Domain of the Canadian Index of Wellbeing Andrew Sharpe, Christopher Ross November 2011 | Report 2011-17 | 124 pages](https://csls.ca/research/living-standards-domain-of-the-canadian-index-of-wellbeing-2011-17/) [Measuring the Appropriate Outcomes for Better Decision-Making: A Framework to Guide the Analysis of Health Policy Matthew Calver March 2016 | Report 2016-03 | 132 pages](https://csls.ca/research/measuring-the-appropriate-outcomes-for-better-decision-making-a-framework-to-guide-the-analysis-of-health-policy-2016-03/) [Productivity: Key to Economic Success Centre for the Study of Living Standards (CSLS) March 1998 | Report 1998-01 | 99 pages](https://csls.ca/research/productivity-key-to-economic-success/) [Productivity Trends: A Canada-U.S. Comparison Centre for the Study of Living Standards (CSLS) January 1999 | Report 1999-01 | 6 pages](https://csls.ca/research/productivity-trends-a-canada-u-s-comparison/) [New Estimates of Manufacturing Productivity Growth for Canada and the United States Andrew Sharpe March 1999 | Report 1999-02 | 21 pages](https://csls.ca/research/new-estimates-of-manufacturing-productivity-growth-for-canada-and-the-united-states/) [Apprenticeship in Canada: A Training System Under Siege? Andrew Sharpe December 1999 | Report 1999-03 | 59 pages](https://csls.ca/research/apprenticeship-in-canadaa-training-system-under-siege/) [A Survey of Indicators of Economic and Social Well-being Andrew Sharpe July 1999 | Report 1999-cprn | 72 pages](https://csls.ca/research/a-survey-of-indicators-of-economic-and-social-well-being/) [Creating a More Efficient Labour Market Centre for the Study of Living Standards (CSLS) June 2001 | Report 2001-02 | 147 pages](https://csls.ca/research/creating-a-more-efficient-labour-market/) [Productivity Trends in the Construction Sector: A Case of Lagging Technical Progress Centre for the Study of Living Standards (CSLS) November 2001 | Report 2001-03 | 177 pages](https://csls.ca/research/productivity-trends-in-the-construction-sector-a-case-of-lagging-technical-progress/) [The Impact of the National Child Benefit Supplement on the Low Income Status of Canadian Families with Children: The SPSD/M Results Centre for the Study of Living Standards (CSLS) June 2002 | Report 2002-01 | 59 pages](https://csls.ca/research/the-impact-of-the-national-child-benefit-supplement-on-the-low-income-status-of-canadian-families-with-children-the-spsd-m-results/) ## Abstract ## Résumé EN FR Copy link Email LinkedIn 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 report 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. This report also explores the relationship between labour productivity and real wages by province and by sector, as well as in the United States and in other high-income countries. La productivité du travail influe sur le niveau de vie directement par son incidence sur les salaires réels, c’est-à-dire les salaires ajustés pour tenir compte du coût de la vie. Entre 1980 et 2005, les gains réels médians des travailleurs canadiens ont stagné, alors que la productivité du travail a augmenté de 37 %. Ce rapport analyse les raisons de cette situation. Il cerne quatre facteurs d’importance à peu près équivalente : la hausse des inégalités salariales; la détérioration des termes de l’échange du travail; une diminution de la part du PIB allant à la rémunération du travail; et des enjeux de mesure. Ce rapport explore également la relation entre la productivité du travail et les salaires réels par province et par secteur, ainsi qu’aux États-Unis et dans d’autres pays à revenu élevé. [Download full PDF report](https://csls.ca/pdf/csls2008-08.pdf)