Changes in the productivity of labour and vertically integrated sectors — an empirical study for Italy

The object of this paper is to derive measures for the changes in physical labour productivity and to apply them to the case of Italy during the 1995-2000 period. Firstly, section 1, introduces the historical development of selected literature on labour productivity measurement using the notion of vertically integrated sectors and derives measures computable from actual data. In the second place,section 2 describes the series utilised and presents the computation of the previously derived measures. Thirdly, section 3 presents the main results, introducing a typology according to which characterize the determinants behind changes in physical labour productivity, and draws implications for the particular case under study. Some final comments are given in section 4.