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Bank of Finland Research Discussion Papers, Bank of Finland

No 4/2005:
Labour productivity growth and industry structure. The impact of industry structure on productivity growth, export prices and labour compensation

Johanna Sinkkonen

Abstract: In this paper labour productivity growth and its impacts are studied at the industry level. The development of productivity is analysed in 54 industries in 14 EU countries and in the US between 1979 and 2001. The conclusion of the study is that the industry structure that leads to fast productivity growth is connected to falling export prices. The relationship between labour productivity growth and labour compensation growth is relative weak and therefore the majority of the utility resulting from the productivity growth does not benefit the labour force.

Keywords: industry structure; labour productivity; export prices; labour compensation; (follow links to similar papers)

JEL-Codes: F41; J30; O47; (follow links to similar papers)

92 pages, February 13, 2005

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