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- Title
Employment in the U and Germany.
- Abstract
This article discusses the employment trends in the U.S. and Germany. The benefits of higher productivity have thus far been retained by employers, reflected in a sharp rise in the profit share of income. Strong profit growth has allowed US firms to absorb much of the cost of the rising oil price, without passing on higher prices to consumers. The decline in the rate of growth of technical progress could come from a slower rate of augmentation of skills, slower accumulation of knowledge, or more likely a slower rate of improvement in the efficiency with which existing resources are used. While labour hoarding may lead to a temporary upward shift in this residual during periods of slow growth, there is no evidence of a correction in 2000, when Germany experienced its fastest rate of growth in 10 years. If these developments reflect a shift in the growth rate of technical progress, they could be captured by an upward shift in the parameter A in our US equation and a downward shift in this parameter for Germany.
- Subjects
GERMANY; UNITED States; UNITED States economy; EMPLOYMENT; GERMAN economy; GROWTH rate; ECONOMIC indicators
- Publication
National Institute Economic Review, 2004, Vol 190, p14
- ISSN
0027-9501
- Publication type
Article