Why is labour productivity so low in Germany?
When comparing labour productivity levels in Germany and France , economy-wide and in industry, we see that the productivity level is lower in Germany than in France. Yet, we would expect a markedly higher productivity level in Germany than in France, due to: Higher labour force skills in Germany; Far more advanced modernisation of capital in Germany; Population ageing in Germany. A possible explanation could be that French companies substitute unsophisticated c apital for low-skilled jobs in France, which obviously increases labour productivity.