In this paper we propose a decomposition technique to examine the sources of industrial contribution to aggregate labour productivity growth. We show that in terms of pure labour productivity growth, the manufacturing and service sectors contributed equally to the aggregate Canada-U.S. labour productivity growth gap during the 1987-98 period. But, in terms of total industrial contributions, which also take into account the contributions from a change in relative size, the service sector was the largest contributor. We also find that high labour productivity growth industries did not attract resources from stagnant industries -a phenomenon consistent with Baumol's cost disease of stagnant industries. JEL Classification: O47, C43Sources de la croissance de la productivite´agre´ge´e du travail au Canada et aux Etats-Unis. Ce me´moire propose une technique de de´composition pour examiner les sources des diverses composantes de la croissance de la productivite´agre´ge´e du travail. On montre que, pour ce qui est de la croissance pure de la productivite´du travail, les secteurs des produits manufacturiers et des services contribuent e´galement a`l'e´cart entre les croissances de la productivite´agre´ge´e du travail au Canada et aux Etats-Unis pour la pe´riode 1987-98. Mais pour ce qui est des contributions totales des secteurs, qui tiennent compte aussi du changement dans la taille relative des secteurs, il est clair que le secteur des service est celui qui contribue davantage. On trouve aussi que les industries a`haute productivite´du travail n'attirent pas les ressources des industrie stagnantes -un phe´nome`ne qui est compatible avec We wish to thank Jennifer Hunt and an anonymous referee for their detailed comments and suggestions, which led to a substantial improvement over a previous version of the paper. We have benefited from comments and suggestions from Rene´Durand, Carolyn MacLeod, Someshwar Rao, and Rene´e St-Jacques. We are also grateful to Varsa Kuniyal for editorial assistance. However, the views expressed in this paper are of the authors only and do not reflect any way those of either Industry Canada or the Government of Canada.
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