Territorial Review Copenhagen - Region Hovedstaden

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Figure 1.12. Economic growth in Danish regions (1997-2006; index=100)
Source: Statistics Denmark
As Copenhagen has a relatively high cost of living, its position may be
overestimated. Comparing the economic income produced in cities in the
OECD is more complicated than for countries, because purchasing power
differs by city. Comparing cities by using national purchasing power parity
(PPP) indicators could thus overestimate the income of cities with relatively
high costs of living. When regional GDP per capita is corrected for regional
cost of living (as expressed in comparative studies on costs for expats, as
conducted by Mercer Consulting), Copenhagen‘s relative position rates
slightly lower. Copenhagen shares this characteristic with other expensive
cities such as Oslo, New York and London.
In terms of labour productivity, Copenhagen scores reasonably well,
both on productivity per worker and per hour, as compared to other
metropolitan areas in the OECD. Several metropolitan areas, for example,
Paris, Munich, Lyon, Vienna and Stockholm, are, however, doing better
(Figure 1.13). Copenhagen rates highly on other labour market indicators. It
has a high participation rate, of around 77%, it has high job turnover, and it
has low unemployment (5% in 2007). Labour market performance in the