TY  - JOUR
AU  - Darby,Michael R.
TI  - The U.S. Productivity Slowdown: A Case of Statistical Myopia
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 1018
PY  - 1984
Y2  - July 1984
UR  - http://www.nber.org/papers/w1018
L1  - http://www.nber.org/papers/w1018.pdf
N1  - Author contact info:
Michael R. Darby
John E. Anderson Graduate School of Management
University of California, Los Angeles
110 Westwood Plaza, Box 951481
Los Angeles, CA 90095-1481
Tel: 310/825-4180
Fax: 310/454-2748
E-Mail: michael.r.darby@anderson.ucla.edu
AB  - This paper identifies three major periods: 1900-1929, 1929-1965, and 1965-1978. In contrast to the middle period, the extreme periods are characterized by rapid growth in private employment and hours worked; because growth in private productivity increases by less, measured labor productivity growth falls compared to the middle period. However this fall reflects a substantial substitution of quantity for quality in labor force growth: after private employment and hours are adjusted for age, sex, immigration, and education, no difference is observed among the average quality-adjusted labor productivity growth rates. Substantial variation in these growth rates remains within the 1929-1965 and 1965-1978 periods. Slow quality-adjusted labor productivity growth during 1929-1948 is just offset by unusually rapid growth during 1948-1965; these variations are attributed to the near cessation of investment during the Depression and World War II and subsequent recovery of the capital-labor ratio. Thus no substantial variations in total factor productivity growth or technical progress is found. Variations inproductivity growth within 1965-1978 are explained by price-control induced biases in reported deflated output. Correction of these biases results inequal quality-adjusted labor productivity growth in 1965-1973 and 1973-1978.A substantial program of future research is proposed. A data appendix is included.
ER  -