convergence

Cross-country productivity disparities rapidly increased in the 1980s, slowed down in the next decade, and stabilized in the mid-2000s. The upper tail the productivity distribution is more sensitive to improvements in human capital, while the lower tail is more sensitive to improvements in technology.

Differences in welfare-adjusted development are larger than those predicted by per-capita GDP. Differences in labor productivity account for most of the differences in both production and welfare-adjusted development. Inefficient production is the main factor holding down labor productivity.