This paper studies the effect of structural change on the historical path of aggregate labor productivity growth for a … that structural change may have on future productivity growth. We document that the observed reallocation of economic … activity since the 1970s towards the service sector has exerted a strongly negative effect on aggregate productivity growth in …

Aggregate productivity growth in the EU14 has slowed significantly in recent decades. Structural change toward services … sectors with stagnant productivity. Europe is projected to fall further behind the US in terms of productivity. R&D tax … credits may not cure Europe's productivity malaise due to negative reallocation effects …