This contrasts with a decrease in the growth rate of U.S. total hours worked from 1.6% in the former period down to 0.9% in the latter. Faster output growth and slower labour input growth have jointly contributed to increase measured labour productivity growth in the U.S.. These recent developments are in stark contrast to the rest of the post-WWII experience.
First, they represent a break in the process of European catching-up and a resumed widening of the productivity gap with the U.S.. Second, the broad tendencies across the Atlantic are no longer aligned, so we cannot explain them with the occurrence of a worldwide adverse shock, such as oil in the 1970s. The roots of the European productivity slowdown must be found within Europe.