Year after year throughout the 1990's, Europe's productivity grew at a pace 18% slower than in the United States. The European experience varied from country to country, but no one did better than the US. By the end of the decade, Europe's productivity gap with the U.S. was 7% in Italy, 9% in France and 12% in the Netherlands, three relatively good cases, but a whopping 25% in Denmark, and 23% in the UK. What explains these sharp differences?
Year after year throughout the 1990's, Europe's productivity grew at a pace 18% slower than in the United States. The European experience varied from country to country, but no one did better than the US. By the end of the decade, Europe's productivity gap with the U.S. was 7% in Italy, 9% in France and 12% in the Netherlands, three relatively good cases, but a whopping 25% in Denmark, and 23% in the UK. What explains these sharp differences?