Question

Access Figure 1 here.


and
have almost an equal number of their populations employed, working almost the same number of hours in a work week. Yet,
is more productive overall.

Answer 1

I can’t open external links or see Figure 1 unless you upload it or paste the data here. Please either upload the image of Figure 1 or tell me which two countries (or the numbers) the sentence should refer to, and I’ll fill in the blanks.

While you get that to me, here are things to check that explain why two countries with similar employment levels and weekly hours can have different overall productivity (GDP per hour worked or GDP per employed person):

- Capital intensity: more machinery, equipment, buildings per worker raises output per hour.
- Human capital: higher education, skills, training and health increase worker output.
- Industry composition: more high-value sectors (manufacturing, high-tech, finance) vs low-productivity services or agriculture.
- Total factor productivity (TFP): better technology, organization, management and innovation.
- Labor quality and job match: fewer underemployed or informal workers; better job-task fit.
- Scale and market access: larger domestic/ export markets and integration increase efficiency.
- Infrastructure and logistics: better transport, energy, and digital networks reduce downtime and costs.
- Institutions and regulations: property rights, contract enforcement, and business environment affect efficiency.
- Measurement differences: use of PPP vs market exchange rates, informal/illegal activity not counted, or differences in how hours are recorded (e.g., overtime vs part-time).

If you upload Figure 1 or give the country names, I’ll complete the sentence and can suggest which of the above factors likely explain the productivity gap.