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U.S. productivity growth in 2000 continues to outpace the rest of the world, while Europe, although making progress on employment growth, continues to experience decelerating productivity growth. Most emerging markets have shown strong productivity gains and improve employment. Even though some European countries match the level of productivity in the United States, higher labor force participation is more important to U.S. per capita income advantage. As these findings show, differences in productivity performance are partly linked to higher investment in technology-intensive industries, in particular, information and communications technologies.
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