The UK productivity puzzle, 2008–2012: evidence using plant-level estimates of total factor productivity

Harris, R.; Moffat, J.

doi:10.1093/oep/gpw057

The UK productivity puzzle, 2008–2012: evidence using plant-level estimates of total factor productivity

Harris, R.; Moffat, J.

Authors

Professor Richard Harris r.i.d.harris@durham.ac.uk
Professor

Dr John Moffat john.moffat@durham.ac.uk
Associate Professor

Abstract

This paper presents new information from plant-level data on the UK’s productivity performance since 2008 and considers whether a fall in the capital-labour ratio explains the UK’s productivity puzzle. The results show that, while both manufacturing and services experienced large declines in labour productivity post-2008, the UK’s poor TFP productivity performance is primarily a service sector and small-plant phenomenon. Most of the fall in TFP in services is accounted for by a large negative TFP shock in 2008–2012. By decomposing the change in average labour productivity, it is shown that declines in the intermediate inputs–labour (rather than the capital–labour) ratio and decreases in TFP were responsible for the fall in labour productivity.

Citation

Harris, R., & Moffat, J. (2017). The UK productivity puzzle, 2008–2012: evidence using plant-level estimates of total factor productivity. Oxford Economic Papers, 69(3), 529-549. https://doi.org/10.1093/oep/gpw057

Journal Article Type	Article
Acceptance Date	Aug 30, 2016
Online Publication Date	Oct 25, 2016
Publication Date	Jul 1, 2017
Deposit Date	Sep 2, 2016
Publicly Available Date	Oct 25, 2018
Journal	Oxford Economic Papers
Print ISSN	0030-7653
Electronic ISSN	1464-3812
Publisher	Oxford University Press
Peer Reviewed	Peer Reviewed
Volume	69
Issue	3
Pages	529-549
DOI	https://doi.org/10.1093/oep/gpw057
Public URL	https://durham-repository.worktribe.com/output/1377067

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Copyright Statement
This is a pre-copyedited, author-produced PDF of an article accepted for publication in Oxford Economic Papers following peer review. The version of record Harris, R. & Moffat, J. (2017). The UK productivity puzzle, 2008–2012: evidence using plant-level estimates of total factor productivity. Oxford Economic Papers 69(3): 529-549 is available online at: https://doi.org/10.1093/oep/gpw057.