Productivity and human capital formation in UK and German manufacturing
Mary O'Mahony ()
No 28, National Institute of Economic and Social Research (NIESR) Discussion Papers from National Institute of Economic and Social Research
Abstract:
Although the gap narrowed in the 1980s German manufacturing is still more productive than manufacturing in the UK. This paper examines the influence of differences in human capital on relative productivity levels in a sample of fifty‐two manufacturing industries. Differences in the average skill levels of the workforce in the two countries are shown to be an important influence on the ratio of German to UK productivity. The results lend some support to the idea, suggested in models of endogenous growth, that investment in human capital has external effects, not captured by individual skilled workers in the form of higher relative wage payments, which raise the productivity levels of all workers. Contact NIESR if copy required
Date: 1992-05
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Persistent link: https://EconPapers.repec.org/RePEc:nsr:niesrd:28
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