Table 1. Rates of change In output per man-hour, hourly 
compensation, and unit labor costs, 1960-70 
(Average annua! percent change] 
Country 
Output 
per 
man-hour 
Hourly 
compen 
sation 
Unit lab 
National 
currency 
lor costs 
U.S. dollar 
basis 
United States 
3.1 
4.6 
1.5 
1.5 
Belgium 
6.2 
9.0 
2.7 
2.7 
Canada 
3.9 
6.1 
2.2 
1.5 
Franc# 
5.8 
8.8 
2 8 
2.1 
Germany 
5.9 
8.9 
2.7 
3.5 
Italy 
6.4 
10.3 
3.7 
37 4 
Japan 
10.8 
13.4: 
2.3 
2.3 
Netherlands 
6.7 
11.4 
4.4 
4.7 
Sweden 
7.6 
9.9 
* 2.2 
2.2 
Switzerland 
4.5 
7.0 
2.5 
2.5 
United Kingdom... 
3.7 
70 
3.2 
1.4 
NOTE: Percent changes computed from the least squares trend ot the logarithms 
of the index numbers. Data relate to all employees in manufacturing (wage earners 
only in Switzerland). 
Table 2. Rates of change in output per man-hour, hourly 
compensation, and unit labor costs, 1960-65 
[Avenge annual percent change) 
Country 
Output 
per 
man-hour 
Hourly 
compen 
sation 
Unit lal 
National 
currency 
aor costs 
U.S. dollar 
basis 
United States 
4.3 
3.7 
-0.7 
-0.7 
Belgium 
5.4 
9 0 
3.4 
3.4 
Canada 
4.7 
3.8 
-0.9 
‘ -3.0 
France 
5.0 
9.0 
3.8 
3.8 
Germany 
6.5 
9.7 
3 0 
3.9 
Italy 
6.8 
13.6 
6.3 
6.3 
Japan 
C 8.5) 
(jg) 
4.3 
4.3 
Netherlands 
5.1 
11.0 
5.6 
6.4 
Sweden 
7.3 
9.5 
2.0 
2.0 
Switzerland 
2.3 
7.6 
5.2 
5.2 
United Kingdom... 
3.7 
6.2 
2.4 
2.4 
NOTE: Percent changes computed from the least squares trend of the logarithms 
cf the index numbers. Data relate to all employees in manufacturing (wage earners 
only in Switzerland). 
Table 3. Rates of change in output per man-hour, hourly 
compensation, and unit labor costs, 1965—70 
[Average annual percent change! 
Country 
Output 
per 
man-hour 
Hourly 
compen 
sation 
Unit labor costs 
National 
currency 
U.S. dollar 
basis 
United States 
I. I 
6.0 
3.9 
3 9 
Belgium 
6 8 
8 4 
1.4 
1.4 
Cennd* 
3 5 
8 3 
4 6 
5 1 
Fmocr. 
6 C 
9 5 
7 / 
6 
Germany 
5 3 
8 7 
3.2 
4 7 
Italy 
5.1 
9.1 
3 8 
3 8 
Japan 
14.2 
15.1 
0.8 
0.8 
Netherlands 
8.5 l 
11.1 
2.5 
2.5 
Jen 
7.9 
10.6 
2.5 
2 5 
Switzerland 
6.2 
6.2 
0 
0 
United Kingdom... 
3.6 
7.6 
3.8 
-0 2 
NOTE: Percent changes computed from the least squares trend of the logarithms of 
the index numbers. D.ila relate to all employees in manufacturing (wag* earners only 
in Switzerland). 
Table 4. Rates of change in output per man-hour, hourly 
compensation, and unit labor costs, 1969-70 
[Average annuel percent change] 
Country 
Output 
per 
man-hour 
Hourly 
compen 
sation 
Unit labor costs 
National 
currency 
U.S. dollar 
basis 
United States 
1.5 
6.8 
5.3 
5.3 
Belgium 
*+ ' 
3 9 
11.7 
7.6 
7.6 
Canada 
2.1 
8.4 
6.2 
9 8 
France 
5.7 
10.5 
4.5 
-2.5 
Germany 
2.2 
17.0 
14.5 
23.2 
Italy 
4.1 
18 8 
14.0 
14.0 
Japan 
15.0 
17.0 
1.7 
1.7 
Netherlands 
9.1 
10.4 
1.3 
1.3 
Sweden.......... 
5 4 
12.7 
6.9 
6.9 
Switzerland.. 
4.3 
6.6 
2 2 
2 2 
United Kingdom... 
3.1 
14.2 
10.7 
10 8 
NOTE: Oata relate to all employees in manufacturing (wage earners only m Switzer 
land). 
William D. Nordhaus 433 
Table 1. Inflation in Manufacturing Wages in Seven Countries, 1956-71 
Percentage change per year* 1 
Year 
Canada 
France 
West 
Germany 
Japan 
Sweden 
United 
Kingdom 
United 
Stares 
1956 
4.7 
6.8 
9.3 
9.1 
8.1 
7.1 
47 \ 
1957 
5.7 
7.5 
9.5 
2.7 
6.0 
6.6 
5.0 , 
1958 
3.0 
11.5 
6.4 
2.1 
4.3 
3.0 
2.8 
1959 
3.5 
5.8 
5.6 
8.0 
4.1 
3.9 
3.7 
1960 
3.4 
6.9 
10.4 
8.2 
6.5 
9.2 
3.1 
1961 
2.7 
7.3 
10.1 
9.2 
8.4 
5.9 
2.6 
1962 
2.6 
8.1 
10.7 
9.6 
6.7 
4.0 
2.9 
1963 
3.6 
8.2 
6.8 
10.0 
8.3 
4.3 
2.8 
1964 
3.5 
6.9 
7.7 
7,2 
5.8 
7.2 
2.8 
1965 
4.8 
5.4 
9.6 
8.6 
10.7 
6.6 
3.1 
1966 
5.9 
5.8 
7.0 
11.5 
7.3 
5.9 
4.1 
6.4 
5.8 
3.9 
11.8 
9.0 
3.2 
1%iT 
7.2 
11.7 
4.0 
14.4 
6.2 
8.1 
6 - ! l 
1969 
7.8 
10.5 
9.7 
15.9 
7.7 
7.6 
5.8 i 
1970 
7.5 
10.1 
11.2 
14.4 
12.3 
11.9 
5.1 
1971 
8.5 
10.5 
11.1 
12.6 
7.4 
10.7 
6.0 [J 
Sources: Economic Report of the President Together with the Annual Report of the ( vinuil of Ex anomie 
Advisers, January 1972\ United Nations, Statistical Yearbook,\arious issues; Oigjinisulion for Economic ( o 
operation and Development, Main Economic Indicators: Historical Statistics, 1959 1969 (Paris: Ol d). 
1970), and Main Economic Indicators, various issues, and Department of Employment Gazette (London: 
Her Majesty’s Stationery Office), various issues. 
a. The wage inflation percentages in this table and elsewhere in the paper arc expressed as first differences 
in the logarithms of hourly earnings of production workers (for Japan, all workers) in manufacturing. This 
logarithmic concept gives results that difler slightly from those obtained by the usual procedure of com 
puting percentage changes. 
./