Policy Article

Productivity in Germany - Measurability and Development (original publication is German only)

Kieler Beiträge zur Wirtschaftspolitik

The trend decline of productivity growth in Germany is not due to a single cause but is the result of the interplay of multiple factors with time-varying relative importance. Notwithstanding severe measurement issues, the evidence is real and not a statistical artefact. As a major part of the explanation of the weak productivity performance in recent years is a temporary process of successful integration of relatively low qualified workers into the labour market, there is no reason to expect productivity growth in Germany to remain depressed in the longer term.