Tuesday, March 27, 2007
Tweet[IWS] CBO: LABOR PRODUCTIVITY: DEVELOPMENTS SINCE 1995 [26 March 2007]
IWS Documented News Service
_______________________________
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor---------------------- Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau
________________________________________________________________________
Congressional Budget Office (CBO)
A CBO Paper
Labor Productivity: Developments Since 1995 [26 March 2007]
http://www.cbo.gov/showdoc.cfm?index=7910&sequence=0&from=7
or
http://www.cbo.gov/ftpdocs/79xx/doc7910/03-26-Labor.pdf
[full-text, 20 pages]
[excerpt]
The paper also explores the reasons for the productivity acceleration and concludes that it
likely stemmed from developments in the information technology (IT) sector, including faster
technological change in the production of IT goods and the boom in business investment in
those goods. Although widely accepted, that explanation raises two questions: Why did productivity
growth accelerate further during a periodthe years since the 2001 business-cycle
peakwhen IT investment fell substantially? And why did European economies fail to experience
a similar productivity surge even though they had access to the same IT goods that
were available in the United States? The paper outlines several possible answers to those questions
but concludes that further research will be necessary before economists can provide a
consensus answer.
Contents
Labor Productivity Growth Since 1995 2
New Cyclical Pattern 4
Shifting Sources of Growth 4
Explaining the Post-1995 Productivity Acceleration 6
Explaining the Post-2001 Productivity Acceleration 8
Explaining the Lag in European Productivity Growth 11
CBO's Projections 12
Tables
1. Changes in Estimates of the Average Annual Growth Rate for Labor Productivity 3
2. Contributions of Capital Deepening and Total Factor Productivity to Labor Productivity Growth, 1990 to 2005 5
Figures
1. Labor Productivity and Trend Growth, 1950 to 2006 2
2. Growth in Labor Productivity, 1950 to 2006 4
3. Total Factor Productivity and Trend Growth, 1980 to 2006 6
4. Investment in Producers' Durable Equipment, 1960 to 2006 7
______________________________
This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.
Stuart Basefsky
Director, IWS News Bureau
Institute for Workplace Studies
Cornell/ILR School
16 E. 34th Street, 4th Floor
New York, NY 10016
Telephone: (607) 255-2703
Fax: (607) 255-9641
E-mail: smb6@cornell.edu
****************************************
_______________________________
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor---------------------- Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau
________________________________________________________________________
Congressional Budget Office (CBO)
A CBO Paper
Labor Productivity: Developments Since 1995 [26 March 2007]
http://www.cbo.gov/showdoc.cfm?index=7910&sequence=0&from=7
or
http://www.cbo.gov/ftpdocs/79xx/doc7910/03-26-Labor.pdf
[full-text, 20 pages]
[excerpt]
The paper also explores the reasons for the productivity acceleration and concludes that it
likely stemmed from developments in the information technology (IT) sector, including faster
technological change in the production of IT goods and the boom in business investment in
those goods. Although widely accepted, that explanation raises two questions: Why did productivity
growth accelerate further during a periodthe years since the 2001 business-cycle
peakwhen IT investment fell substantially? And why did European economies fail to experience
a similar productivity surge even though they had access to the same IT goods that
were available in the United States? The paper outlines several possible answers to those questions
but concludes that further research will be necessary before economists can provide a
consensus answer.
Contents
Labor Productivity Growth Since 1995 2
New Cyclical Pattern 4
Shifting Sources of Growth 4
Explaining the Post-1995 Productivity Acceleration 6
Explaining the Post-2001 Productivity Acceleration 8
Explaining the Lag in European Productivity Growth 11
CBO's Projections 12
Tables
1. Changes in Estimates of the Average Annual Growth Rate for Labor Productivity 3
2. Contributions of Capital Deepening and Total Factor Productivity to Labor Productivity Growth, 1990 to 2005 5
Figures
1. Labor Productivity and Trend Growth, 1950 to 2006 2
2. Growth in Labor Productivity, 1950 to 2006 4
3. Total Factor Productivity and Trend Growth, 1980 to 2006 6
4. Investment in Producers' Durable Equipment, 1960 to 2006 7
______________________________
This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.
Stuart Basefsky
Director, IWS News Bureau
Institute for Workplace Studies
Cornell/ILR School
16 E. 34th Street, 4th Floor
New York, NY 10016
Telephone: (607) 255-2703
Fax: (607) 255-9641
E-mail: smb6@cornell.edu
****************************************
# posted by SBasefsky : 8:06 AM
