Prosperity and Productivity: A Canada-Australia Comparison

Abstract

This study compares Canada’s economic performance to Australia. The comparison is performed in terms of: a) living standards and its proximate sources of growth-labour productivity and labour utilization (or hours worked per person) and b) the underlying sources of labour productivity growth. There are marked differences in the structures of the labour market between the two countries, reflected by a more rapid growth in hours at work and labour utilization rate in Canada. However, this rapid growth in hours at work has muted Canada’s labour productivity growth, which increased less rapidly than its Australian counterpart.

Keywords: productivity, labour market, standards of living

JEL Classification: D24, J24, O47