• Statistical Insights: Are international productivity gaps as large as we thought? - OECD
    http://www.oecd.org/sdd/productivity-stats/statistical-insights-are-international-productivity-gaps-as-large-as-we-though


    Figure 1. Average annual hours worked per person, selected OECD countries, 2016

    Labour productivity is a key indicator of economic wellbeing, and raising it – producing more goods and services from the same or less work (labour input) – is one of the main drivers of sustainable economic growth.

    Historically, comparisons of levels of productivity across countries have shown substantial gaps, even between similar-sized economies at a similar stage of development – leaving many analysts struggling to understand the causes. However, a new OECD study has found that at least a part of these gaps disappears once we adjust for differences in how countries measure labour input.
    In the case of the United Kingdom for instance, the study reveals that the gap in labour productivity levels with the United States is around 8 percentage points smaller than was previously thought – closing from 24% to 16%. The gap with Germany shrinks from 22% to 14% and with France from 20% to 11%.

    The corollary of lower hours worked of course is higher labour productivity levels. Figure 2 shows labour productivity levels, referenced to the United States, using official national accounts average hours worked estimates, comparing them with new results from the OECD simplified component approach for countries using the direct method.

    Overall, the results point to a reduction in relative productivity gaps of around 10 percentage points on average compared with current official estimates in many countries, with notable international ranking changes for some countries. The United Kingdom for example moves above Italy, while Austria moves ahead of France, the Netherlands, Switzerland and Germany.


    Figure 2. International productivity gaps, levels, 2016