UK labour productivity is significantly lower than that of many other similarly advanced economie... more UK labour productivity is significantly lower than that of many other similarly advanced economies and has been so for decades, with negative implications for UK living standards. To make matters worse, during the last ten years labour productivity growth has stalled in most industrialised countries, and particularly in the UK. This has led to a renewed policy focus on productivity growth, as evidenced by successive government productivity plans and efforts to re-invigorate industrial strategy. This paper reviews the evidence on UK productivity performance, identifying what we know about the causes of its weakness, what we do not know and what this means for policy. We review the evidence through the lens of developments in economic measurement, drawing in particular on the work of National Institute colleagues past and present, and with a view to the key measurement challenges ahead that, unlocked, will help us understand better what is holding back UK productivity.
How much of the growth of output can be accounted for by the growth of inputs and how much is due... more How much of the growth of output can be accounted for by the growth of inputs and how much is due to the growth of productivity? This book is the most detailed attempt yet made to answer this question for Britain. Estimates of outputs and inputs for over 130 industries were constructed, following the methodology pioneered by Professor Dale Jorgenson. These estimates can be employed to build up a picture of the performance of UK manufacturing as a whole. Contrary to the impression left by some previous authors, growth of productivity is found to play a relatively minor role - growth of inputs, when properly measured, accounts for most of the growth of output. The wealth of data which this book presents can also be used to shed light on a number of recent controversial views attached to the ‘New Growth Theory’. According to this theory, externalities and increasing returns, often held to be associated with fixed investment, are the engine of economic growth. However, this book finds t...
This paper provides an overview of sectoral productivity in Europe for the period 1995-2004. In a... more This paper provides an overview of sectoral productivity in Europe for the period 1995-2004. In an earlier discussion paper, we considered the trends in output and employment, however, taken separately, these may reflect differences in size and input intensities. Productivity measures performance and efficiency more accurately than output or employment since it incorporates inputs and outputs into a single measure. As such, we are able to consider a number of research questions more directly.
We construct benchmark estimates of labour productivity covering the transport and communications... more We construct benchmark estimates of labour productivity covering the transport and communications sectors for the UK, Germany and the US for 1992 and 1993. The estimates are based on industry data and use physical indicators of output. In transport, UK and German productivity levels are similar though with the UK leading in air transport. The US lead is substantial, particularly in rail and trucking, even after adjusting for differences in stage length. In telecommunications the UK and Germany are again at roughly similar levels, but US productivity is twice as high. In postal services the US lead is 37% after adjusting for quality but here Germany is at only 50% of the UK level. We compare these industry-based estimates with those obtained using value added from national accounts converted at purchasing power parities and find them to be broadly similar. Keywords Labour productivity, services, international comparisons, transport, communications JEL codes O57, L91, L96, P52 Address...
We construct benchmark estimates of labour productivity covering the transport and communications... more We construct benchmark estimates of labour productivity covering the transport and communications sectors for the US, UK and Germany for 1992 and 1993. The US lead is substantial in rail and trucking, even after adjusting for differences in stage length, but Britain leads in air transport and all three countries have similar productivity levels in local transport. In telecommunications and
UK labour productivity is significantly lower than that of many other similarly advanced economie... more UK labour productivity is significantly lower than that of many other similarly advanced economies and has been so for decades, with negative implications for UK living standards. To make matters worse, during the last ten years labour productivity growth has stalled in most industrialised countries, and particularly in the UK. This has led to a renewed policy focus on productivity growth, as evidenced by successive government productivity plans and efforts to re-invigorate industrial strategy. This paper reviews the evidence on UK productivity performance, identifying what we know about the causes of its weakness, what we do not know and what this means for policy. We review the evidence through the lens of developments in economic measurement, drawing in particular on the work of National Institute colleagues past and present, and with a view to the key measurement challenges ahead that, unlocked, will help us understand better what is holding back UK productivity.
How much of the growth of output can be accounted for by the growth of inputs and how much is due... more How much of the growth of output can be accounted for by the growth of inputs and how much is due to the growth of productivity? This book is the most detailed attempt yet made to answer this question for Britain. Estimates of outputs and inputs for over 130 industries were constructed, following the methodology pioneered by Professor Dale Jorgenson. These estimates can be employed to build up a picture of the performance of UK manufacturing as a whole. Contrary to the impression left by some previous authors, growth of productivity is found to play a relatively minor role - growth of inputs, when properly measured, accounts for most of the growth of output. The wealth of data which this book presents can also be used to shed light on a number of recent controversial views attached to the ‘New Growth Theory’. According to this theory, externalities and increasing returns, often held to be associated with fixed investment, are the engine of economic growth. However, this book finds t...
This paper provides an overview of sectoral productivity in Europe for the period 1995-2004. In a... more This paper provides an overview of sectoral productivity in Europe for the period 1995-2004. In an earlier discussion paper, we considered the trends in output and employment, however, taken separately, these may reflect differences in size and input intensities. Productivity measures performance and efficiency more accurately than output or employment since it incorporates inputs and outputs into a single measure. As such, we are able to consider a number of research questions more directly.
We construct benchmark estimates of labour productivity covering the transport and communications... more We construct benchmark estimates of labour productivity covering the transport and communications sectors for the UK, Germany and the US for 1992 and 1993. The estimates are based on industry data and use physical indicators of output. In transport, UK and German productivity levels are similar though with the UK leading in air transport. The US lead is substantial, particularly in rail and trucking, even after adjusting for differences in stage length. In telecommunications the UK and Germany are again at roughly similar levels, but US productivity is twice as high. In postal services the US lead is 37% after adjusting for quality but here Germany is at only 50% of the UK level. We compare these industry-based estimates with those obtained using value added from national accounts converted at purchasing power parities and find them to be broadly similar. Keywords Labour productivity, services, international comparisons, transport, communications JEL codes O57, L91, L96, P52 Address...
We construct benchmark estimates of labour productivity covering the transport and communications... more We construct benchmark estimates of labour productivity covering the transport and communications sectors for the US, UK and Germany for 1992 and 1993. The US lead is substantial in rail and trucking, even after adjusting for differences in stage length, but Britain leads in air transport and all three countries have similar productivity levels in local transport. In telecommunications and
Uploads
Papers by Mary O'Mahony