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Productivity in Market Services: International Comparisons


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Productivity, Trade, and Regional EconomiesPaper Category Number
105
This paper presents comparisons of labour productivity (value added per hour worked) in market services for the UK, the US, France and Germany in 1993. Market services are defined as (1) Distribution, Hotels and Catering, (2) Transport and Communications and (3) Finance, Insurance and Real Estate. Estimates have been made for ten service sectors within these three broad groupings. Market services make up 34-43% of total employment in the four countries. For productivity in market services as a whole, the US led the UK by 38% in 1993, Germany led the UK by 34% and France led the UK by 36%. The UK productivity shortfall vis-ˆ-vis Germany and France was wider in market services than in manufacturing. It is only relative to the US that Britain performs better in market services than in manufacturing.
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