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Productivity

IFS contacts: Rachel Griffith and Laura Abramovsky

Long-term increases in prosperity and living standards depend on sustained growth in labour productivity (output per worker or output per hour worked). In recent decades, the level of labour productivity in the UK has been low compared with that in similar countries such as the USA, France and Germany.

Our research looks at the factors that underlie the UK's productivity performance, and include a broad range of issues such as how new entry, management methods, changes in economic institutions or the adoption of information and communication technologies, affect productivity and economic performance.

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01 June 2010
Journal Articles
Article
We provide empirical evidence that the reforms carried out under the EU Single Market Programme were associated with increased product market competition.
01 February 2009
Journal Articles
Article
In this we provide evidence that correlations between incumbent productivity growth and patenting arise from a causal effect predicted by Schumpeterian growth theory.
01 January 2009
Journal Articles
Article
This article exploits a quasi-experimental setting to estimate the impact that a commonly used performance-related pay scheme had on branch performance in a large distribution firm.
01 March 2007
Journal Articles
Article
We analyze the impact of product market competition on unemployment and wages, and how this depends on labour market institutions.
06 December 2006
Journal Articles
16 November 2006
IFS Working Papers
Article
This paper exploits a quasi-experimental setting to estimate the impact that a multi-dimensional group incentive scheme had on branch performance in a large distribution firm.
01 September 2006
External publications
Article
We provide empirical evidence that the reforms carried out under the EU Single Market Programme (SMP) were associated with increased product market competition, as measured by a reduction in average profitability, and with a subsequent increase in innovation intensity and productivity growth for manufacturing sectors.
01 September 2006
IFS Working Papers
Article
The paper provides empirical evidence that the reforms carried out under the Single Market Programme were associated with increased product market competition.
21 June 2006
External publications
Article
This report analyses the impact of product market reforms, in the form of the EU Single Market Programme, on the extent of product market competition and the subsequent effects of competition on innovation activity and productivity growth.
18 April 2006
IFS Press Releases
Article
Opening product markets up to competition has helped to reduce unemployment in many European countries, according to new research from the IFS.
28 March 2006
IFS Working Papers
Article
We analyze the impact of product market competition on unemployment and wages, and how this depends on labour market institutions.
01 February 2006
External publications
Article
How does firm entry affect innovation incentives and productivity growth in incumbent firms?
01 October 2005
External publications
Article
How does firm entry affect innovation incentives and productivity growth in incumbent firms? Micro-data suggests that there is heterogeneity across industries - incumbents in technologically advanced industries react positively to entry, but not in laggard industries.
05 July 2005
Journal Articles
Article
This paper discusses some of the main issues involved in the measurement of productivity in retail, and how these problems are being tackled in new work using microdata on the UK supermarket industry.
29 March 2005
IFS Working Papers
Article
Recent attention has focused on the UK's productivity gap in the retail sector.
01 November 2004
Journal Articles
Article
Many writers have claimed that research and development (R&D) has two faces.
13 October 2004
Journal Articles
Article
How does entry affect productivity growth of incumbents? In this paper we exploit policy reforms in the United Kingdom that changed entry conditions by opening up the U.K. economy during the 1980s and panel data on British establishments to shed light on this question.
13 October 2004
Journal Articles
Article
How does entry affect productivity growth of incumbents? In this paper we exploit policy reforms in the United Kingdom that changed entry conditions by opening up the U.K. economy during the 1980s and panel data on British establishments to shed light on this question.
09 September 2004
Journal Articles
Article
This paper examines the relationship between foreign ownership and productivity, paying particular attention to two issues neglected in the existing literaturethe role of multinationals in service sectors and the importance of R&D activity conducted by foreign multinationals.
01 August 2004
IFS Working Papers
Article
This paper examines the relationship between foreign ownership andproductivity, paying particular attention to two issues neglected in the existing literature the role of multinationals in service sectors and the importance of R&D activity conductedby foreign multinationals.
01 August 2004
External publications
Article
This study analyses the macro-economic impact of product market reforms undertaken in the European Union over the 1980s and 1990s by examining a large number of regulations and reforms across EU countries.
02 December 2003
IFS Briefing Notes
Article
The UK's poor productivity performance relative to the US has been a focus for government policy and analysis in recent Budgets and Pre-Budget Reports. The labour productivity gap fell over the early 1990s, when the UK experienced relatively faster growth in business sector labour productivity than the US, but it has since increased again as productivity growth slowed in the UK and accelerated in the US. This aggregate picture hides considerable variation at the industry level. In some industries the gap has narrowed substantially over the past decade, while in others it has widened. As a result, although the total size of the productivity gap did not change very much over the 1990s, the industries that account for the majority of the gap have changed considerably. An understanding of where the productivity gap arises is essential to be able to target policy effectively.
01 December 2002
IFS Working Papers
Article
This paper investigates whether there is a convergence in Total Factor Productivity towards the technological frontier at the establishment level.
01 April 1999
IFS Working Papers
Article
Many sectors of the UK economy experienced rapid productivity growth over the 1980's. This coincided with an increase in the flow of inward investment.
01 January 1999
IFS Working Papers
Article
Recently the data underlying the Annual Census of Production has been made available to academic
01 November 1998
IFS Reports
Article
This commentary asks whether a productivity gap is really the problem facing Britain. Do lower levels of output per worker suggest greater inefficiency or do they reflect differences in levels of inputs? Historically low levels of investment suggest that our stock of R&D, physical and human capital may be lower than it is in the other main industrialised countries.

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