Future Productivity Growth in Canada and Implications for the Canada Pension Plan

Abstract

This is organized into three main parts. The first section provides a perspective on future productivity growth in Canada. It discusses key productivity concepts, looks at current productivity trends, examines the forces affecting future productivity growth, and reviews productivity projections in Canada and the United States. The second section discusses the relationship between productivity growth and the real earnings of workers, and examines the implications of different productivity assumptions for CPP financial projections. The third part examines the relationship between productivity growth and other key variables affecting CPP financial projections, namely the real rate of return on investments, price increases, participation rates, retirement rates, migration rate, mortality rate, fertility rate, and disability rates.Productivity growth, Real earnings, Canada Pension Plan (CPP), Investment return, Price, Retirement, Migration.