Comparisons Of Labour Productivity And Per Capita Income In The Nordic Countries (2000-2010)

Abstract

Due to increased international trade for the last decades and also increased labour and capital mobility, there has been increased interest in international comparisons of economic performance and living standard among countries. Economic performance for a country may be measured by average labour productivity while living standard is measured by production per capita. Differences in these figures among countries are determined by differences in the number of working hours per person per year and the share of the population that works. This approach gives us the opportunity to examine how living standard and economic performance are related.

Labour productivity depends, in general, on the amount of labour and capital, but also on factors like the education of the labour force and in investments in more modern technical equipment. This study will give us some ideas of the relative importance of labour market policy and the necessity for investments to improve the economic conditions in a country.