Pessoa, João Paulo and Van Reenen, John 
ORCID: 0000-0001-9153-2907
(2014)
The UK productivity and jobs puzzle: does the answer lie in wage flexibility?
The Economic Journal, 124 (576).
pp. 433-452.
ISSN 0013-0133
Abstract
UK GDP per worker fell by almost 4% in the five years following Lehman's collapse in 2008, something unprecedented in post-war history. A possible reason for poor productivity is low growth in the effective capital-labour ratio. This is likely to have occurred because there has been a fall in real wages and increases in the cost of capital due to the financial crisis. We simulate various changes in the capital-labour ratio and after accounting for these changes, the evolution of total factor productivity appears much more similar to earlier severe recessions and likely to be related to underutilised resources.
| Item Type: | Article |
|---|---|
| Official URL: | http://onlinelibrary.wiley.com/journal/10.1111/(IS... |
| Additional Information: | © 2014 Blackwell Publishing Ltd |
| Divisions: | Economics Centre for Economic Performance |
| Subjects: | H Social Sciences > HC Economic History and Conditions |
| Date Deposited: | 12 Jun 2014 16:29 |
| Last Modified: | 01 Nov 2024 05:25 |
| URI: | http://eprints.lse.ac.uk/id/eprint/57051 |
Actions (login required)
 |
View Item |
