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An International perspective on the productivity paradox – by Alain ...

An International perspective on the productivity paradox – by Alain ...

1980198119821983198419851986198719881989199019911992199319941995199619971998199920002001200220032004200520062007NZL has narrowed the gap in human capital vis-à-visselected English-speaking and Nordic countries30%Human capital (Average years of schooling)NZL minus other countries20%10%0%-10%AUSCANSWEUSADNK-20%-30%10

1980198119821983198419851986198719881989199019911992199319941995199619971998199920002001200220032004200520062007The downward trend in labour productivity is mostlyreflected in what can be loosely interpreted as MFP0.40Country fixed effects + residuals from MRW regressionNZL and selected countries0.300.200.100.00-0.10-0.20AUSCANNZLSWEUSADNK-0.30-0.40Downward trend more pronounced after 1990 if good labourmarket performance was taken into account11

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