Why has productivity fallen in the euro zone relative to the United States?

The level of labour productivity has declined markedly in the euro zone relative to the United States, which is mainly due to the fall in total factor productivity in the euro zone relative to the United States. What accounts for the weakness of total factor productivity in the euro zone? Weak investment? Weak capital modernisation? Weak human capital and a low education level? A weak innovation effort? We find that the euro zone’s weak total factor productivity relative to the United States can be attributed to the low level of human capital and a weak innovation effort in the euro zone .