All work and no play : Productivity has grown faster in western Europe

The eu economy is now 65% the size of America’s in dollar terms, down from 90% just ten years ago. gdp per person is higher, and has grown far faster, in the United States than in Europe.

Goods and services cost more in some countries than in others, and working more does not always make people better off.

각국 소득 비교시 환율을 선정하는 문제: PPP(물가를 고려한 환율)

Measuring living standards requires converting gdp figures to “purchasing-power parity” (ppp).

Today, the gap is 46%, largely thanks to a strong dollar. Adjusting for ppp, the eu’s gdp is roughly 95% of America’s, the same as it was ten years ago.


Still, ppp-adjusted gdp per person has grown faster in America than in most of western Europe.

But focus instead on productivity, by dividing these figures by a tally of hours worked, and the gap closes further.

because of differences in holiday allowances, pensions and unemployment benefits, Europeans work less than Americans do. On an hourly basis, countries like Austria, Belgium and Denmark leap ahead. In France, Germany and Sweden productivity has also grown faster in the past ten years than it has in America.