Magazine article International Productivity Monitor

The Relationship between Labour Productivity and Real Wages Growth in Canada and OECD Countries

Magazine article International Productivity Monitor

The Relationship between Labour Productivity and Real Wages Growth in Canada and OECD Countries

Article excerpt

The most direct mechanism by which labour productivity affects living standards is through real wages, that is, wages adjusted to reflect the cost of living. Between 1980 and 2005, the median real earnings of Canadians workers stagnated, while labour productivity rose 37 per cent. This report analyzes the reasons for this situation. It identifies four factors of roughly equal importance: rising earning inequalities; falling terms of trade for labour; a decrease in labour's share of GDP; and measurement issues. This report also explores the relationship between labour productivity and real wages by province and by sector, as well as in the United States and in other high-income countries.

La productivite du travail affecte les niveaux de vie directement a travers son impact sur les salaires reels, c'est-a-dire les salaires ajustes pour tenir compte de l'inflation sur le pouvoir d'achat. Entre 1980 et 2005, les travailleurs Canadiens ont vu leurs gains medians reels stagnes, alors que la productivite du travail augmentait de 37 pourcent Ce rapport de recherche analyse les raisons sous-tendant cette situation. …

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