Comparative productivity levels in manufacturing since the Industrial Revolution: Lessons from Britain, America, Germany and Japan

Abstract This paper shows that levels and trends of comparative labour productivity in manufacturing differ from levels and trends of labour productivity at the whole economy level, suggesting that structure and structural change play an important role in the growth process. Persistent differences in productivity levels are related to the choice between standardised mass production and craft flexible production technologies. These technological choices are shown to affect the development of human capital, because of the different requirements of the two systems for shopfloor. management and research skills.

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