Increases in labour productivity explain almost all gains in worker compensation over last 40 years in Canada

Higher Labour Productivity is the Key to Faster Income Growth.


VANCOUVER—If Canada wants to increase worker compensation, then increases in labour productivity growth must be the policy focus for all governments, finds a new study published today by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.

“Despite any claims to the contrary, the best available evidence clearly shows that gains in labour productivity explain almost all the gains in income,” said Philip Cross, senior fellow at the Fraser Institute and author of Higher Labour Productivity is the Key to Faster Income Growth.

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