1887

Productivity Growth in the Nordic Countries

An Appraisal of Analysis, Data and Methodological Information

image of Productivity Growth in the Nordic Countries

Even small increases in a country's growth rate can result in large changes in living standards over just one generation. This key insight, which often seems to be forgotten by policymakers, is an important reason why the field of economic growth continues to be a large research field. This report provides an overview of the development of labor productivity in the Nordic countries (Denmark, Finland, Iceland, Norway, and Sweden) since the early 1980s. It also examines if data are consistent with predictions of traditional theories of growth. The analysis shows, for example, that the real wage per employee is positively related to the level of labor productivity - a finding suggesting that changes in relative standards of living have been driven by parallel changes in relative productivity.

English

.

Abstract

While focusing on the Nordic countries from the early 1980s, this study shows that real wages per employee are positively related to the level of labor productivity. This finding hence suggests that changes in relative standards of living in the Nordic countries are, at least in part, driven by parallel changes in relative productivity. The analysis also reveals that initial differences between the Nordic countries in terms of output per hours worked, output per employee, and wage per employee seem to fade away over time. Yet another finding is that the decline in the goods sector’s share in total hours is, in general, larger than that of total output – i.e., the ongoing shifting out of goods production into services implies higher labor productivity in the goods sector.

English

This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error