The euro area has experienced a sustained decline in labour productivity growth since the 1980s. In the economic literature this phenomenon is commonly explained by a decline in capital deepening and lower total factor productivity (TFP) growth. However, the decline in labour productivity growth...

Extending the common baseline model in various dimensions does not fundamentally change the low contribution of labor quality to productivity growth in Germany. Labor quality growth is low owing to a small increase in the share of workers with higher education, a negative contribution from a...

This paper develops empirical growth models suitable for dual economies, and studies the relationship between structural change and economic growth. Changes in the structure of employment will raise aggregate productivity when the marginal product of labour varies across sectors. The models in...