Saturday, May 18, 2013

Detrended Productivity, Hours/Capita and GDP/Capita

Below, following and extending the data of Cociuba, Prescott and Ueberfeldt (Simona Cociuba's website), Corrections displays Productivity (Production/Hour Worked), GDP/Capita (Production/Person) and Hours/Capita (Total Hours/Persons) (click to enlarge).  Population is restricted to ages 16-64.

All series are detrended:  any straight horizontal line therefore represents "typical" constant exponential growth in growth variables (production/cap and productivity).
Particularly interestingly, productivity growth has been lower than trend, rather than higher.  Firms are not "squeezing out more per hour."  Or they are, but the rate of increase at which they are able to squeeze out more per hour is lower.

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