ANNUAL REPORT OF THE CENTRE FOR THE STUDY OF LIVING STANDARDS

Centre for the Study of Living Standards 111 Sparks Street, Suite 500, Ottawa, ON K1P 5B5 Tel 613-233-8891 Fax 613-233-8250 csls@csls.ca ANNUAL REPORT OF THE CENTRE FOR THE STUDY OF LIVING STANDARDS JULY 1, 2000 TO JUNE 30, 2001 December, 2001

2 Table of Contents Annual Report of the Centre for the Study of Living Standards, 2000-2001 Introduction... 5 Major Projects... 6 International Productivity Monitor... 6 Review of Economic Performance and Social Progress... 8 Economic Growth and Inequality.... 8 Index of Economic Well-being... 9 Roundtable on Creating a More Efficient Labour Market... 10 Ford Foundation Project on New Architecture for Labour Market Statistics.. 11 Workshop and Volume on Productivity in Canada... 11 Contract Research... 11 Other Activities... 12 Special Issue of Canadian Public Policy on Structural Unemployment... 12 Sessions at Meetings of Economics Associations... 13 International Activities... 13 Canada-U.S. Manufacturing Productivity Gap... 13 Productivity Data Base... 14 Website... 14 Media Coverage and Commentary... 14 Speeches and Presentations... 14 Advisory Committees and Working Groups... 14 Activities Planned for 2001-02... 15 CSLS Staff... 15 Financial Information... 15 Acknowledgements... 16 Appendix 1: CSLS Activities, July 1, 2000-June 30, 2001... 17 Conferences and Conference Sessions Organized... 17 Meetings and Events Organized... 17 Papers Presented... 18 Presentations...... 19 Discussion of Papers... 20

3 Chairing of Sessions... 20 Briefings on CSLS Activities and Research... 20 Advisory Committees, Working Groups, Editorial Boards and Boards of Directors... 20 Appendix 2: Publications, 2000-01... 22 CSLS Reports... 22 Contract Research Reports... 22 Articles in Journals... 22 Chapters in Books...... 23 Articles in Newsletters and Newspapers... 23 Edited Publications... 24 Other... 24 Appendix 3: Selected List of CSLS Media Coverage, July 1, 2000 - June 30, 2001. 25 Print Media Coverage of CSLS Activities... 25 Selected Electronic Media Coverage of CSLS Activities... 26 Selected CSLS Quotations and Commentary in the Print Media... 26 CSLS Quotations and Commentary in the Electronic Media...... 26 Appendix 4: Plenary Session Organized by the Centre for the Study of Living Standards at the 26 th General Conference of the International Association for Research on Income and Wealth, Cracow, Poland, August 27-September 1, 2000... 27 Appendix 5: Program for the CSLS-Industry Canada Workshop on Productivity Issues, September 29, 2000, Lord Elgin Hotel, Ottawa, Ontario... 28 Appendix 6: Program for the IRPP-CSLS Conference on Economic Growth and Inequality, Chateau Laurier Hotel, Ottawa, Ontario, January 26-27, 2001... 30 Appendix 7: Members of the Research Advisory Committee for the IRPP-CSLS Project on the Linkages between Economic Growth and Inequality... 34 Appendix 8: Program for the CSLS Roundtable on Creating a More Efficient Labour Market, February 26-27, 2001, Chateau Laurier Hotel, Ottawa, Ontario... 36 Appendix 9: Sessions Organized by the Centre for the Study of Living Standards at the Annual Meeting of the Canadian Economics Association, McGill University, Montreal, Quebec, June 1-3, 2001... 38 Appendix 10: Table of Contents for the Special Issue of Canadian Public Policy on Structural Aspects of Unemployment in Canada, July 2000... 41 Appendix 11: Table of Contents for the Inaugural Issue of the International Productivity Monitor, Fall 2000... 43

4 Appendix 12: Table of Contents for the Second Issue of the International Productivity Monitor, Spring 2001... 44 Appendix 13: Table of Contents of the Inaugural Issue of the Review of Economic Performance and Social Progress entitled Canada in the 1990s: The Longest Decade, June 2001... 45 Appendix 14: Selected Examples of Print Media Coverage... 47

5 Annual Report of the Centre for the Study of Living Standards, 2000-01 The Centre for the Study of Living Standards (CSLS) is a national, non-profit, independent research organization incorporated under the Canada Corporations Act on February 27, 1995. CSLS activities began in May 1995 and the CSLS office was opened in August of that year. This sixth annual report covers the activities of the CSLS between July 1, 2000 and June 30, 2001. The objectives of the CSLS are twofold: first, to contribute to a better understanding of trends in and determinants of living standards through research; and second, to contribute to public debate on living standards issues by developing and advocating specific policies to improve the standard of living of Canadians. The CSLS carries out much of its work by developing research networks to mobilize the intellectual resources of the country to shed light on key economic trends and issues. The year 2000-01 was a very successful one for the CSLS. The main accomplishment of the year was the launching of two new periodic publications: the semi-annual International Productivity Monitor and the annual Review of Economic Performance and Social Progress. A second key development was the major improvement in the financial position of the Centre. This report provides a summary of all CSLS activities. The key projects undertaken in 2000-01 are highlighted below: launch of a new semi-annual publication entitled the International Productivity Monitor; launch with the Institute for Research on Public Policy of a new annual publication entitled the Review of Economic Performance and Social Progress; organization of a workshop with Industry Canada on Productivity Issues in a Canadian Context in September 2000; organization with the Institute for Research on Public Policy of a major international conference on the linkages between economic growth and inequality in January 2001; organization, at the request of Human Resources Development Canada, of a stakeholder roundtable on creating a more efficient labour market in February 2001; organization of five sessions at the annual meeting of the Canadian Economics Association in June 2001; organization of the logistics for an Industry Canada conference on North American Linkages in Calgary Alberta in June 2001;

6 extension of the Index of Economic Well-being to OECD countries and the presentation of this work at a number of international conferences; the coordination of an international project funded by the Ford Foundation on the development of a new architecture for labour market statistics; preparation of a research report for the Economic Policy Institute on trend productivity in the new economy; and preparation of a research report for the International Labour Organization on poverty of the working population in developed countries; preparation of two research reports for the National Roundtable on the Environment and the Economy on human capital indicators; and preparation of a research report for the Canada Mortgage and Housing Corporation on productivity in the construction sector. International Productivity Monitor Major Projects In September 2000, the Centre for the Study of Living Standards (CSLS), with the financial support of Industry Canada, launched the International Productivity Monitor. The objective of this publication is to focus attention on the importance of productivity for improving living standards and quality of life. The Monitor publishes high-quality articles on productivity issues, trends and developments in Canada and other countries and serves as a vehicle for an international exchange of ideas and information on productivity topics. Print and on-line versions are published twice a year in English and French and distributed on a complimentary basis. The articles are largely non-technical in nature and of interest to a wide audience of productivity researchers and analysts as well as the general public. The inaugural issue of the Monitor contained eight articles: the new economy and trend productivity growth in Canada; the renaissance of service sector productivity in the United States; a regional comparison of U.S-Canada standards of living; the postwar productivity convergence experience among OECD countries; price cap regulation and productivity growth; and a symposium of three articles on the measurement and interpretation of total factor productivity. The table of contents is provided in Appendix 11. The second issue, released in April 2001, contained six articles: the determinants of trends in the living standards of Canadians in the 1990s; the role of innovation in productivity growth; the role of information technology in driving the productivity revival in the United States; the characteristics of the new economy; the new OECD

7 productivity manual; and a review of two important recent contributions to the productivity literature in Canada. The table of contents is provided in Appendix 12. Both issues have received extensive media coverage, including the top headline on page 1 of the National Post on May 7, 2001. A list of selected media coverage is found in Appendix 3 and the National Post article is found in Appendix 14. The publication is edited by CSLS Executive Director Andrew Sharpe. A small Editorial Board has been established with the roles of reviewing the material for publication, providing ideas for articles, and setting general editorial guidelines. Members of this Board in 2000-01 were Pierre Fortin, Professor of Economics at the Université du Québec à Montréal and a member of the CSLS Board of Directors; Jeremy Rudin, Director of the Economic Studies and Policy Analysis Division at Finance Canada; and Someshwar Rao, Director, Strategic Investment Analysis, Micro-Economic Policy Branch at Industry Canada. In addition to the Editorial Board, an International Advisory Committee composed of leading international productivity experts has been established. This committee meets once a year in conjunction with the annual meeting of the American Economic Association. The most recent meeting took place on January 5, 2001 in New Orleans. Members of this committee contribute articles to the Monitor and keep the editor abreast of world productivity developments. The members of the International Advisory Committee in 2000-01 were: Joji Arai, Executive Director of the International Productivity Service; Ernie Berndt, Professor of Economics at the Sloan School at MIT; Jeff Bernstein, Professor of Economics at Carleton University and the Research Associate at the NBER; Erwin Diewert, Professor of Economics at the University of British Columbia; Barbara Fraumeni, Chief Economist at the Bureau of Economic Analysis; Robert Gordon, Professor of Economics at Northwestern University; Richard G. Harris, Telus Professor of Economics at Simon Fraser University; Tony Hubert, Executive Director of the European Association of Productivity Centres; Charles Hulten, Professor of Economics at the University of Maryland; Dale Jorgenson, Professor of Economics at Harvard University; Larry Mishel, Vice-President of the Economic Policy Institute; Pascal Petit of CEPREMAP, Universite de Paris; Paul Schreyer from the OECD; Anwar Shaikh, Professor of Economics at the New School for Social Research; Mark Sherwood, Chief of Foreign Labor Statistics at the Bureau of Labor Statistics; Jack Triplett, Visiting Scholar at the Brookings Institution; Bart van Ark, Professor of Economics at the University of Groningen; and Edward Wolff of New York University and Editor of the Review of Income and Wealth.

8 Review of Economic Performance and Social Progress This project, initiated in the spring of 2000, was one of two projects in 2000-01 undertaken in the general area of economic performance and social progress in partnership with the Institute for Research on Public Policy (IRPP). It involved the establishment of a new annual publication entitled the Review of Economic Performance and Social Progress. The objective of this new annual is to publish articles that review the current state of economic performance and social progress in Canada and in other countries, provide in-depth examinations of specific aspects of our economic performance and social progress, and analyze the two-way linkages and interaction between economic performance and social progress. The publication is designed to be accessible to a general audience. Contributions are commissioned from leading Canadian researchers in a variety of disciplines. The editors of this publication in 2000-01 were: Keith Banting, Director of the School of Policy Studies at Queen's University and a member of the CSLS Board of Directors; Andrew Sharpe, CSLS Executive Director; and France St-Hilaire, Vice- President at the Institute for Research on Public Policy. The theme of the first issue of the annual was the relationship between the various components of economic performance and social progress in Canada in the 1990s. It explored the issue of to what degree the poor economic performance in the 1990s impeded social progress and the extent to which a lack of social progress in certain areas had a negative effect on economic performance. Articles were commissioned in the summer and fall of 2000. An authors' workshop was held December 8-9, 2000 in Ottawa where first drafts of the papers were presented to a small invitational audience. The inaugural issue of the Review, subtitled The Longest Decade: Canada in the 1990s, was co-published in June 2001 by the Centre for the Study of Living Standards and the Institute for Research on Public Policy and distributed by McGill-Queen s University Press. All articles have also been posted on the CSLS and IRPP websites for free download. Appendix 13 provides the table of contents of the Review. The Review generated considerable media coverage (see Appendix 3), including a very positive editorial in the Toronto Star and the recommendation by Hugh Winsor of the Globe and Mail that copies be sent to all MPs for summer reading! Economic Growth and Inequality Linkages This project, also initiated in the spring of 2000, was the second CSLS-IRPP research initiative on the nexus between economic performance and social progress undertaken in 2000-01. The objective of the project was to shed light on the two-way linkages between economic growth and inequality in the context of developed countries. The project was coordinated by Pierre Fortin, Professor of Economics at Université du Québec à Montréal and a member of the CSLS Board of Directors; Andrew Sharpe, CSLS Executive Director; and France St-Hilaire, Vice-President at the Institute

9 for Research on Public Policy. It followed the pattern of earlier CSLS projects. This involved the formation of a Research Advisory Committee composed of government and non-government representatives to oversee the project (see Appendix 7 for a list of the members); a general call for papers distributed for posting to the chairs of all economics departments in Canada, and a personal invitation to selected researchers to participate; the holding of a pre-conference for discussion of research plans and preliminary findings; the organization of a major conference for public presentation of the research findings; and the finally publication of a refereed volume based on the conference papers. The project s pre-conference was held November 3-4, 2000 in Montreal and was attended by approximately 25 persons, including presenters and invited guests. The second meeting of the Research Advisory Committee took place immediately following the pre-conference. A major international conference was held January 26-27, 2001 at the Chateau Laurier Hotel in Ottawa. It attracted nearly 200 persons, including a large number of attendees from Finance Canada and representatives from ten of the 12 provincial and territorial governments. A total of 14 papers were presented (see Appendix 6 for the program). The conference was televised nationally on the CPAC channel. All papers, as well as the comments of the discussants, and presentations by the luncheon and dinner speakers and by the closing panel, have been posted on the CSLS and IRPP websites. The speakers were: Gary Burtless from the Brookings Institution; Robert Frank from Cornell University; and Pierre Fortin from the Université du Québec à Montréal. Op-ed articles by the project organizers synthesizing the findings from the conference appeared in The Globe and Mail and La Presse. These articles are found in Appendix 14. The papers are currently being refereed and revised by the authors. They will be published in a special issue of Canadian Public Policy in the first half of 2002 edited by the three project coordinators. Index of Economic Well-being In 2000-01, the CSLS continued to work on the development of the Index of Economic Well-being, in particular updating estimates for Canada and the provinces, the United States, and OECD countries. The project continues to be coordinated by Andrew Sharpe, CSLS Executive Director, and Lars Osberg, Professor of Economics at Dalhousie University and a member of the CSLS Board of Directors. These new estimates of the Index for OECD countries were presented at various conferences and seminars in Canada and abroad, including among others, the conference of the International Society for Quality of Life Studies in Girona, Spain in July 2000; the 26 th General Conference on the International Association for Research in Income and Wealth in Krakow, Poland in August 2000; the national conference on sustainable development indicators organized by the National Roundtable on the Environment and the Economy in March 2001; and at a conference on quality of life trends in North America at the Jerome Levy Institute at Bard College near Albany, New York in June 2001.

10 The updated results of the Index of Economic Well-being for Canada were published in the inaugural issue of the Review of Economic Performance and Social Progress in June 2001 and for OECD countries in the 2001 HDRC-OECD volume The Contribution of Human and Social Capital to Sustained Economic Growth and Wellbeing. Articles on the basic Index and extensions of the framework are forthcoming in a number of outlets, including Social Indicators Research; the Review of Income and Wealth; a volume by the population health research group of the Canadian Institute for Advanced Research; and in a Jerome Levy Institute volume on trends in quality of life in North America. The Index of Economic Well-being has become well known both within Canada and abroad. The OECD provided a summary of the Index in its 2001 publication The Well-being of Nations: The Role of Human and Social Capital. The CSLS has received requests from organizations in a number of countries, including Turkey and Russia, to calculate the Index for these countries. Unfortunately, in most cases data limitations constitute a barrier to such calculations at this time. The CSLS plans further work on the index in a number of areas, including development of societal weights through focus groups and surveys; the development of linkages between productivity and the components of the index; and more sophisticated modeling of environmental sustainability. Updated estimates will continue to be released on a regular basis. Roundtable on Creating a More Efficient Labour Market On February 26-27, 2001, the Centre for the Study of Living Standards held a stakeholder roundtable on creating a more efficient labour market. The event was sponsored by Human Resources Development Canada (HDRC) as part of its policy development process on this skills agenda. The specific objectives of the roundtable were to examine the recommendations of the Expert Panel on Skills report released in February 2000 and to gauge support for future action in the area of skills and learning. Two additional roundtables were also held, one on life-long learning by the Canadian Policy Research Networks in March 2001, and the other on creating opportunities by the Conference Board of Canada in April 2001. The CSLS roundtable was invitational, with requests for participation extended to leading members of the stakeholder communities, including the business, labour, academic, public policy, and non-governmental organization communities as well as selected government officials. A total of 70 persons participated in the event. The roundtable began on the evening of February 26 with a speech by the Honourable Jane Stewart, Minister of Human Resources Development. The Globe and Mail provided front-page coverage of this speech in the next day s newspaper. The speech was also carried nationally on CPAC. The second day consisted of four plenary sessions focusing on specific topics: ways to improve the effectiveness of sector councils; the role of the labour market information system in improving labour market efficiency; the effectiveness of immigration in meeting the current needs of the labour market; and the strengths and weaknesses of the Canadian apprenticeship system. In addition, Lars

11 Osberg, McCullough Professor of Economics at Dalhousie University, gave an afterlunch address on a framework for a more efficient labour market. Arthur Kroeger, former Deputy Minister of Employment and Immigration Canada, served as rapporteur. At the beginning of each session, four persons very knowledgeable about the topic (two from the private sector, one from academia and one from the federal or provincial government) served as lead speakers to stimulate discussion. Roundtable participants were supplied with background material on each of the four topics to assist them in their deliberations. The final program is found in Appendix 8. The CSLS prepared a report for HRDC synthesizing the key points made at the roundtable. This document has been used as input for the development of HDRC s skills agenda. In June 2001, the CSLS released to the public both the report and the proceedings of the deliberations at the roundtable. The document is posted on the CSLS Website. Ford Foundation Project on New Architecture for Labour Market Statistics In 2000-01, the CSLS began the coordination of a two-year international project on the construction of a new cross-national architecture for labour market statistics. The project is funded by the Ford Foundation and involves researchers from 11 countries (Canada, United States, United Kingdom, France, Germany, Italy, Japan, Spain, Denmark, Sweden, and the Netherlands). The projects builds on the results of an earlier project which examined the international comparability of labour market statistics, chiefly the unemployment rate, for nine of the 11 countries involved in the current project. Project members are working on three interrelated topics. One team of researchers is examining the conceptual and empirical underpinnings of the concept of labour market performance, a second is exploring the notion of labour market capacity, and the third is investigating the concept of labour market well-being. A meeting to develop the work plans for each team was held in Rome, Italy in June 2001. Workshop and Volume on Productivity in Canada At the request of Industry Canada, the CSLS organized a one-day invitational workshop on productivity issues in a Canadian context on September 29, 2000 at the Lord Elgin Hotel in Ottawa. Six papers have been presented reviewing the findings of government and other research on key productivity issues and identifying research gaps (see Appendix 5 for the program). These papers, along with other papers on productivity sponsored by Industry Canada, are being published in an Industry Canada research volume edited by Someshwar Rao of Industry Canada and Andrew Sharpe. The University of Calgary Press will publish the volume in 2002. Contract Research In addition to its own research projects, the CSLS on an occasional basis undertakes research contracts for other organizations on topics in which the CSLS has an

12 interest and expertise. In 2000-01, the CSLS undertook major external research contracts for four organizations, as outlined below: the Washington, D.C.-based Economic Policy Institute (EPI), for which the CSLS produced a comprehensive survey of the literature on trend productivity in the new economy; the International Labour Organization (ILO), for which the CSLS used the Luxembourg Income Study micro-data base to estimates trends in the number of working poor in developed countries for the ILO's World Employment Report; the National Roundtable on the Environment and the Economy (NRTEE), for which the CSLS prepared reports on the human capital indicators in the health and education areas and on a framework to measure the sustainability of human capital; and Canada Mortgage and Housing Corporation (CMHC), for which the CSLS prepared a report on productivity trends in the construction sector in Canada. As a general rule, the CSLS retains the right to release to its subscribers, the media, and the general public the results of any contract research. In 2000-01, the CSLS published three papers done under contract during the year. They were: Trend Productivity and the New Economy, a report prepared for EPI; Estimates of the Relative and Absolute Poverty Rates for the Working Population in Developed Countries prepared for the ILO, and The Development of Indicators for Human Capital Sustainability prepared for the NTREE. All three studies are posted on the CSLS Website under reports. At the request of Industry Canada, in the spring of 2001 the CSLS agreed to assist in the organization of a conference on North American Linkages that was held in Calgary, Alberta on June 21-22, 2001. Industry Canada let a contract to the CSLS to handle conference registration, travel arrangements of participants, liaison with the hotel, preparation of conference binders and other tasks associated with the running of the conference. CSLS Executive Director served as rapporteur for the event. Other Activities In additional to major projects outlined above, in 2000-01 the CSLS undertook a number of other activities, summarized below. Special Issue of Canadian Public Policy on the Structural Unemployment In April 1999, with funding from Finance Canada and Human Resources Development Canada, the CSLS organized a conference on structural aspects of unemployment in Canada. The papers from this conference were published in a 256 page special issue of the journal Canadian Public Policy, entitled Structural Aspects of

13 Unemployment in Canada released in July 2000. The volume was edited by Andrew Sharpe and Timothy C. Sargent of Finance Canada. The table of contents for the volume is found in Appendix 10. Sessions at Meetings of Economics Associations As a way of fostering debate of key economic issues and raising the profile of the CSLS in Canada and abroad, the CSLS organizes sessions at the meetings of economics associations. In 2000-01, sessions were organized at two conferences. Ιn August 2000, the CSLS organized a plenary session on measures of economic well-being at the 26 th General Conference of the International Association for Research in Income and Wealth in Krakow, Poland (see Appendix 4 for the program). Αt the June 2001 annual meeting of the Canadian Economics Association at McGill University in Montreal, the CSLS organized five sessions on the following topics: international trends in poverty, measures of sustainability, productivity trends in the new economy, linkages between economic growth and inequality (see Appendix 9 for details). The sessions in all cases were very well attended. International Activities In 2000-01, the CSLS significantly increased its international activities. In addition to contract research for the International Labour Organization and the Economic Policy Institute, coordination of an international project on labour market statistics, and the organization of a session at the biennial conference on the International Association for Research on Income and Wealth, the CSLS was involved in the following international activities: Canadian representative (with the Caledon Institute) on an international working group organized by the German Bertelsmann Foundation that produces the publication International Reform Monitor; Member of the Board of Directors of the International Society for Quality of Life Studies (ISQOLS); and Member of the Board of Directors of two international economics journals: The Review of Income and Wealth and Journal of Socio-Economics. Canada-U.S. Manufacturing Productivity Gap Work continued in 2000-01 on the preparation of the conference volume from the CSLS conference held in January 2000 on the Canada-U.S. manufacturing productivity gap. The objective of this project has been to examine factors behind the slower labour productivity growth and the lower labour productivity level in Canadian manufacturing

14 compared to U.S. manufacturing. A special issue of Canadian Public Policy will be produced in 2002. Productivity Data Base In 2000-01, the CSLS continued to update estimates for aggregate labour market, income and productivity on its productivity data base. However, because of an inability to reconcile labour input estimates based on the new North American Industry Classification System (NAICS) with the real output and capital stock estimates which continued to be based on the 1980 Standards Industry Classification, the detailed industry productivity tables were not updated. When real output estimates based on NAICS become available from Statistics Canada, the tables will be updated. Tables can be viewed and downloaded and viewed at no charge. The productivity estimates from the data base continue to be widely used in the productivity debate. Website The CSLS Website (www.csls.ca) continued to expand in 2000-01, with all new CSLS documents posted, including conference papers and comments by discussants. The Website has been particularly useful for the diffusion of the International Productivity Monitor, which receives the largest number of hits of all documents posted. Media Coverage and Commentary National media coverage of CSLS activities and CSLS media commentary continued to be strong in 2000-01, including front-page stories in the National Post and The Globe and Mail. The January 2001 conference on economic growth and inequality and the February 2001 roundtable on creating a more efficient labour market were carried nationally on CPAC. Listing of selected media coverage is provided in Appendix 3 and examples of media coverage are found in Appendix 14. Speeches and Presentations In 2000-01, CSLS Executive Director Andrew Sharpe gave a total of 20 presentations and speeches, including presentation and discussion of papers to a wide variety of groups. Ten of the presentations were related to the Centre s work on economic well-being, with the others related to a wide range of topics, including productivity, poverty, and inequality. A list of the presentations is provided in Appendix 1. Advisory Committees and Working Groups. The CSLS collaborates in a volunteer capacity with a large number of organizations and bodies. In 2000-01, CSLS Executive Director Andrew Sharpe served on seven advisory committees, four working groups, four editorial boards, and two Boards of Directors (see Appendix 1).

15 Activities Planned for 2001-02 The CSLS has a full agenda for the program year beginning July 1, 2001, with much of the work continuing projects begun in 2000-01, such as the International Productivity Monitor and the Review of Economic Performance and Social Progress. New activities taking place in 2001-02 include the following: in recognition of David Slater s contribution to the economics profession in Canada, the CSLS is organizing a Festscrift for presentation at a dinner in his honour on the occasion of his 80th birthday in October 2001. About 20 wellknown Canadian economists are contributing papers to the volume. Patrick Grady of Global Economics and Andrew Sharpe are editing the volume, which is being jointly published by the CSLS and the John Deutsch Institute of Queen's University; at the request of the Minister of Human Resources Development Canada, the CSLS is conducting an evaluation of the impact on the poverty rate and gap of the introduction of the National Child Benefits Supplement using three Statistics Canada data bases: SPSD/M, LAD and SLID; and The CSLS is organizing with the UK s National Training Office an international conference on sectoral training initiative to be held in London in mid-2002. CSLS Staff In July 2000, Leila Gharani, a recent University of Toronto MA in economics from Iran, joined the CSLS. Unfortunately, in March 2001 she left the CSLS to return home. From April 2000 to February 2001, Katie Hoffman provided administrative support on a part-time basis. In February 2001, Lynne Browne joined the CSLS as a parttime office manager. Dmitry Kabrelyan has continued to maintain the CSLS website and provide research support on a part-time contract basis. In May 2001, Jeremy Smith, an undergraduate economic student at the University of Ottawa was hired as a summer student. Yu Zhang, a graduate economics student at Carleton University, also worked for a 10-week term in the spring and summer of 2001 under the HDRC wage subsidy program. Financial Information In the fiscal year ending March 31, 2001, CSLS reported net revenues or an operating surplus of $95,226 based on gross revenues of $425,832 and expenditure of $330,606. Gross revenues were up 13.8 per cent in 2000-01 over 1999-00 while expenditures were down 12.5 per cent. The surplus eliminated the cumulative deficit of

16 $30,382 built up over the first five years of operations, leaving the CSLS with a balance of $64,844 as of March 31, 2001. The much improved financial situation is 2000-01 over earlier years reflected an increase in the number of projects undertaken by the CSLS, particularly the number of contract research projects. The multi-year contracts with Industry Canada for the International Productivity Monitor and with the Institute for Research on Public Policy for work on the linkages between economic performance and social progress now provide a stable financial base for CSLS operations. A detailed breakdown of revenue and expenditure is given in the financial statement and can be obtained by contacting the CSLS office. Acknowledgements In 2000-01, the CSLS completed its sixth successful year of operation. This success is due to the contributions and support of a large number of individuals and organizations. I would like to thank CSLS Executive members David Slater and Ian Stewart for their continued commitment to the idea of CSLS; the CSLS Board of Directors for their strong support; Lars Osberg for his continued invaluable assistance on the Index of Economic Well-being; Lynne Browne for office management; Jeremy Smith, and Yu Zhang for research assistance; Dmity Kabrelyan for website maintenance and work with the Luxembourg Income Study; Rodney Haddow for assistance in the writing of the Roundtable report; contributors to and funders of all CSLS projects for their interest in the work of the CSLS; and Brian Watson for accounting and auditing services. Andrew Sharpe CSLS Executive Director December 11, 2001

17 Appendix 1 CSLS Activities, July 1, 2000-June 30, 2001 Conferences, Workshops, and Conference Sessions Organized August 31, 2000 September 29 November 3-4 December 8-9 Plenary Session on Measures of Economic Well-being at the 26 th General Conference of the International Association for Research in Income and Wealth, Krakow, Poland. CSLS-Industry Canada Workshop on Productivity Issues in a Canadian Context, Lord Elgin Hotel, Ottawa, Ontario. IRPP-CSLS Pre-conference on the Linkages between Economic Growth and Inequality, Renaissance Hotel du Parc, Montreal, Quebec. Authors Workshop on the IRPP-CSLS Review of Economic Performance and Social Progress, Lord Elgin Hotel, Ottawa, Ontario. January 26-27, 2001 IRPP-CSLS Conference on the Linkages between Economic Growth and Inequality, Chateau Laurier, Ottawa, Ontario. February 26-27 June 1-3 June 21-22 CSLS Roundtable on Creating a More Efficient Labour Market, Chateau Laurier Hotel, Ottawa, Ontario. Sessions on productivity trends in the new economy, international trends in poverty, linkages between economic growth and inequality, and sustainability at the annual meeting of the Canadian Economics Association, McGill University, Montreal, Quebec. Industry Canada Conference on North American Linkages, Delta Hotel, Calgary, Alberta. Meetings and Events Organized September 29, 2000 Reception to celebrate the 5 th anniversary of the Centre for the Study of Living Standards and to launch the International Productivity Monitor, Chateau Laurier, Ottawa, Ontario. September 29 November 4 Tenth Meeting of the CSLS Board of Directors, Le Jardin, Ottawa, Ontario. Second Meeting of the Research Advisory Committee for the IRPP-CSLS Project on the Linkages between Economic Growth and Inequality project, Renaissance Hotel Du Parc, Montreal,

18 Quebec. January 5, 2001 May 31 June 3 June 19 Second Annual Meeting of the International Advisory Committee of the International Productivity Monitor, Arnaud s Restaurant, New Orleans, Louisiana. IRPP-CSLS Reception to Launch the Review of Economic Performance and Social Progress, IRPP Office, Montreal, Quebec Eleventh Meeting of the CSLS Board of Directors, Best Western Hotel, Montreal, Quebec. IRPP-CSLS Reception to Launch the Review of Economic Performance and Social Progress, Chateau Laurier Hotel, Ottawa, Ontario. Papers Presented by Andrew Sharpe (text available) July 20, 2000 July 21 August 31 January 26, 2001 March 27 June 1-3 June 1-3 "An Index of Economic Well-being for OECD Countries," (with Lars Osberg) paper presented to the conference of the International Society for Quality of Life Studies, Girona, Spain. "Quality of Life Indexes for National Policy: Review and Agenda for Research," (with others) paper presented in plenary at the conference of the International Society for Quality of Life Studies, Girona, Spain. "Comparisons of Economic Well-being in OECD Countries," (with Lars Osberg) paper presented to the 26 th General Conference of the International Association for Research on Income and Wealth, Krakow, Poland. Overview of the Linkages between Economic Growth and Inequality, IRPP-CSLS conference on the linkages between economic growth and inequality, Chateau Laurier, Ottawa, Ontario. The Index of Economic Well-being: An Overview, (with Lars Osberg) paper presented at the National Conference on Sustainable Development Indicators organized by the National Round Table on the Environment and the Economy, Westin Hotel, Ottawa, Ontario. Trend Productivity in the New Economy: a Survey, (with Leila Gharani), paper presented in the CSLS session on Productivity in the new economy at the annual meeting of the Canadian Economics Association, McGill University, Montreal, Quebec. The Development of Indicators for Human Capital

19 Sustainability, paper presented for the CSLS Session on sustainability indicators at the annual meeting of the Canadian Economics Association, McGill University, Montreal, Quebec. June 1-3 June 6-7 Estimates of the Relative and Absolute Poverty Rates for the Working Population in Developed countries, paper presented at the CSLS session of international measurement of poverty at the annual meeting of the Canadian Economics Association, McGill University, Montreal, Quebec. Has Economic Well-being Improved in Canada and the United States? (with Lars Osberg) paper presented at the conference on What Has Happened to the Quality of Life in America and Other Advanced Industrial Nations? Jerome Levy Economics Institute of Bard College, Annandale-on-the-Hudson, New York. Presentations by Andrew Sharpe September 26, 2000 Le Québec et l Ontario: convergence or divergence? table ronde organisée par le Fonds de solidarité, Faculty Club, McGill University, Montreal, Quebec. October 3 October 18 January 15, 2001 March 25 March 30 April 27 May 1 Trends in the Index of Economic Well-being in Canada, seminar given to the Department of Economics, University of Ottawa. Measuring Living Standards, talk given to the Pinecrest Lutheran Church Seniors Group, Ottawa, Ontario. Trends in Economic Well-being in Canada seminar given at the Ontario Ministry of Economic Development, Toronto, Ontario. Fiscal Issues Facing Ontario, presentation to the Ontario Liberals Policy conference, Niagara-on-the-Lake, Ontario. Synthesis of the Findings of the IRPP-CSLS Conference on the Linkages between Economic Growth and Inequality, presentation to the Population Health Group of the Canadian Institute for Advanced Research, Omni Hotel, Montreal, Quebec. A Comparison of Canadian and U.S. Labour Market Trends, presentation to the Strategic Policy seminar series, Human Resources Development Canada, Hull, Quebec. Perspectives on the Knowledge-based Economy presentation to the Vietnamese delegation for a CIDA Project on Canadian assistance to Vietnam, Rideau Club, Ottawa, Ontario.

20 Discussion of Papers July 20, 2000 December 1 June 20, 2001 Conference of the International Society for Quality of Life Studies, Girona, Spain, commentator on keynote address on the Human Development Index. Discussant for papers by Walid Hajazi and Bill Singleton on foreign direct investment, Policy Research Conference, Westin Hotel, Ottawa, Ontario. Rapporteur comments on the papers presented at the Industry Canada conference on North American Linkages, Calgary, Alberta. Chairing Sessions September 29, 2000 Chair, CSLS-Industry Canada Workshop on Productivity in a Canadian Context, Lord Elgin Hotel, Ottawa, Ontario. February 27, 2001 Chair of the CSLS Roundtable on Creating a More Efficient Labour Market, Chateau Laurier, Ottawa, Ontario. Briefings on CSLS Activities and Research November 8, 2000 March 22, 2001 April 23 May 18 Governor Gordon Thiessen and other members of the Governing Council of the Bank of Canada on trend productivity. OECD Team on Canada on CSLS research activities. Dick Proctor, MP on income and tax trends. Delegation from the UK National Training Office on Canadian sector councils. Advisory Committees, Working Groups, Editorial Boards, and Boards of Directors, July 1, 2000-June 30, 2001 Advisory Committees Member, Statistics Canada Advisory Committee on Services. Member, Statistics Canada Advisory Committee on the Voluntary Sector. Member, Steering Committee of the Environment and Sustainable Development Indicators Initiative of the National Round Table on the Environment and the Economy.

21 Member, Advisory Committee on the Index of Personal Security, Canadian Council on Social Development. Member, Conference Board of Canada Expert Committee on Connectedness. Member, Selection Committee for the 2000 Policy Research Conference. Member, Advisory Committee on the CPRN Project on Quality of Life Indicators. Working Groups Member, Ad Hoc Committee for the Review of Quality of Life Indexes, International Society for Quality of Life Studies (ISQOLS). Coordinator, Ford Foundations Project on Developing a New Architecture for Labor Market Statistics. Canadian Representative (with Caledon Institute), Bertelsmann Foundation for the International Reform Monitor. Member, Rotman School Roundtable of Canadian Economic Policy. Editorial Boards Member, Editorial Advisory Board, Canadian Business Economics. Member, Editorial Committee, Review of Income and Wealth. Member, Editorial Group, La Minute de l'emploi, Le Fond de solaridité. Member, Editorial Board, Journal of Socio-Economics. Boards of Directors Member, Board of Directors, International Society for Quality of Life Studies. Member, Canadian Employment Research Forum.

22 Appendix 2 Publications, 2000-01 CSLS Reports Trend Productivity and the New Economy, October 2000. The Productivity Renaissance in the U.S. Service Sector, October 2000. Estimates of Relative and Absolute Poverty Rates for the Working Population in Developed Countries, March 2001. Report and Proceedings from the CSLS Roundtable on Creating a More Efficient Labour Market held February 26-27, 2001, June 2001. The Development of Indicators for Human Capital Sustainability, June 2001. Contract Research Reports The Linkages between Productivity and Economic Well-being in Canada, paper prepared for Industry Canada volume Productivity in Canada, September 2000. Estimates of Relative and Absolute Poverty Rates for the Working Population in Developed Countries, report prepared for the International Labour Organization, November 2000. Health and Education Human Capital Indicators, discussion paper prepared for Environment and Sustainable Development Indicators Initiative of the National Round Table on the Environment and the Economy, December 2000. Proposed Framework on Human Capital Indicators, report prepared for the Environment and Sustainable Development Indicators Initiative of the National Round Table on the Environment and the Economy, February 2001. Trend Productivity and the New Economy, final report prepared for the Economic Policy Institute, March 2001. Productivity Trends in the Construction Sector in Canada, draft report prepared for Canada Mortgage and Housing Corporation, June 2001. Articles in Journals "Structural Aspects of Unemployment in Canada: Introduction and Overview," (with Tim Sargent) special issue of Canadian Public Policy, S1-S5, July, 2000. "Youth Unemployment in Canada, 1976-98," (with Morley Gunderson and Steven Wald)

23 Special Issue of Canadian Public Policy, S85-S100, July, 2000. The New Economy and Trend Productivity Growth in Canada, (with Leila Gharani) International Productivity Monitor, Fall 2000, Number 1, pp. 3-5. The Productivity Renaissance in the U.S. Service Sector, International Productivity Monitor, Fall 2000, Number 1, pp. 6-8. Determinants of Trends in Living Standards in Canada and the United States, 1989-2000, International Productivity Monitor, Spring 2001, Number 2, pp. 3-10. Review Article on Productivity Growth in Canada and Industry-level Productivity and International Competitiveness Between Canada and the United States, International Productivity Monitor, Spring 2001, Number 2, pp. 52-58. Quality of Life Indexes for National Policy: Review and Agenda for Research, Michael R. Hagerty, Robert A. Cummins, Abbott L. Ferriss, Kenneth Land, Alex C. Michalos, Mark Peterson, Andrew Sharpe, Joseph Sirgy, Joachim Vogel, Social Indicators Research June, 2001. Chapters in Books The Longest Decade: Introduction and Overview, (with Keith Banting and France St- Hilaire) in the inaugural issue of the Review of Economic Performance and Social Progress, edited by Keith Banting, Andrew Sharpe, and France St-Hilaire, published by the Institute for Research on Public Policy and the Centre for the Study of Living Standards and distribiuted by McGill-Queen s University Press, June 2001. Trends in Economic Well-being in Canada, (with Lars Osberg) in the inaugural issue of the Review of Economic Performance and Social Progress, edited by Keith Banting, Andrew Sharpe, and France St-Hilaire, published by the Institute for Research on Public Policy and the Centre for the Study of Living Standards and distribiuted by McGill- Queen s University Press, June 2001. Comparisons of Trends in Gross Domestic Product and Economic Well-being- The Impact of Social Capital, (with Lars Osberg) in The Contribution of Human and Social Capital to Sustained Economic Growth and Well-being: International Symposium Report, edited by John Helliwell, published by Human Resources Development Canada and the OECD, 2001. Articles in Newsletters and Newspapers Le Québec et l Ontario: convergence or divergence? La Minute de l emploi, septembre 2000, Vol. 3, No. 8. The Canada-U.S. Income Gap" in Canada Watch, November-December 2000, Volume 8, Numbers 4-5, John Robarts Centre for Canadian Studies, York University.

24 Les inequalités freinent la croissance, Pierre Fortin, Andrew Sharpe, and France St- Hilaire, La Presse, le 24 janvier, 2001. You Can be Too Rich, Pierre Fortin, Andrew Sharpe, and France St-Hilaire, The Globe and Mail, January 25, 2001. Edited Publications Canadian Public Policy, Special Issue on Structural Aspects of Unemployment in Canada (with Tim Sargent) July 2000. International Productivity Monitor, Number One, Fall 2000 and Number Two Spring 2001. Inaugural Issue of the Review of Economic Performance and Social Progress: The Longest Decade: Canada in the 1990s, (with Keith Banting and France St-Hilaire), published by the Institute for Research on Public Policy and the Centre for the Study of Living Standards and distributed by McGill-Queen s University Press, June 2001. Other Annual Report of the Centre for the Study of Living Standards, 2000-01, December 2001.

25 Appendix 3 Selected List of CSLS Media Coverage, July 1, 2000-June 30, 2001 Print Media Coverage of CSLS Activities Sept. 28, 2000 Productivity trends in the new economy, Bruce Little, The Globe and Mail. September 28 Research groups sees higher productivity growth, David Crane, Toronto Star. Feb. 27, 2001 Skilled-worker shortage could reach one million, front-page story, Shawn McCarthy, The Globe and Mail. February 27 May 1 May 7 May 7 May 7 May 14 May 14 May 31 May 31 June 1 June 2 June 26 Government plans skills tax shelter, Eric Beauchesne, Ottawa Citizen. Canadian living standards rising less than in U.S. David Crane, front page story, Business section, Toronto Star. Productivity Gap Widens: Study, front page headline and story in the National Post. Canada falls behind U.S. Eric Beauchesne, Ottawa Citizen. Are Canadians up to increasing productivity? Bruce Little, Amazing Facts, The Globe and Mail. Here s great Canadian tradeoff, column by Dalton Camp, The Hill Times. Also in Toronto Star. Second thoughts on free trade, William Thorsell, The Globe and Mail. The 1990s: The Longest Decade and still going strong, Bruce Little Dismal Science, The Globe and Mail. We should all be better off in the new economy, David Crane, Toronto Star. How the other half lives, Hugh Winsor, The Power Game, The Globe and Mail. People Economics: Editorial, The Toronto Star. Bigger gap needs bigger solutions, Editorial, Terence Corcoran, Financial Post.