Covergence of Industry Labor Productivity among Advanced Economies, 1963-1982

Abstract
Data are used for 13 industrialized countries to investigate countries to investigate convergence of labor productivity levels to individual manufacturing industries over the 1963-82 period. We find convergence in virtually every manufacturing industry. Among these countries, the coefficient of variation of industry labor productivity declined in all but 1 of 28 industries. However, productivity convergence is stronger for all manufacturing than within individual industries, especially heavy and high-technology industries. Also, variation in employment mix among countries plays little role in explaining cross-country differences in aggregate manufacturing productivity, nor have changes in employment mixes been an important source of convergence.

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