Productivity Development in the Construction Industry by International Comparison and at the Example of Human Capital

A downward trend on productivity growth rates has been observed since the 1970s of the twentieth century for construction sectors of western industrial countries. Despite conflicting evidence, numerous recent economic studies on growth research suggest that innovation and technology are significant drivers for productivity and growth. According to the OECD the lack or low level of employees' skills and qualifications might be in different ways a possible explanation for the observed slowdown of productivity growth. In this context, intrafirm behaviour has long been recognized as a potentially important driver for productivity. Results from surveys show that management practices have become more structured, in the sense of involving more data collection and analysis. Furthermore, a strong positive correlation between the measured management quality and firm performance can be observed. Studies suggest that there is a positive association between human skills and productivity.