The lack of productivity gains in the euro zone is essentially structural in origin

There are two opposing interpretations of the lack of productivity gains in the euro zone since late 2017: A cyclical interpretation (the high level of hiring difficulties has stopped companies from dismiss ing employees , the fall in the unskilled unemployment rate has driven down the overall level of productivity ); A structural interpretation (the low level of investment in new technologies and spending on research and development, and an ageing labour force are the main reasons for the lack of productivity gains). By comparing OECD countries, we assess the contribution of structural problems to the slowdown in productivity gains in the euro zone. Our quantitative assessments show that most of the lack of productivity gains can be explained by structural causes.