Labour productivity in G7 countries¶

According to OECD, gross domestic product (GDP) is the standard measure of the value added created through the production of goods and services in a country during a certain period.

GDP per hour worked measures the productivity of labor, and the efficiency with which labor input and other factors of production are used in the production process. The labor factor is the total number of hours worked by all the individuals involved in production.

What is the evolution of labour productivity for G7 countries over the years ?

Import required libraries¶

In [1]:

import pandas as pd
import numpy as np
import plotly.express as px
import plotly.io as pio
import plotly.graph_objects as go
from IPython.display import Javascript
from plotly.subplots import make_subplots

Javascript(
"""require.config({
 paths: { 
     plotly: 'https://cdn.plot.ly/plotly-latest.min'
 }
});"""
)

pio.renderers.default = 'notebook_connected'

Data pre-processing¶

In [2]:

df_gdp_hour_worked = pd.read_csv('Data/GDP_per_hour_worked_indicator.csv', 
                              sep=',', 
                              usecols=['LOCATION', 'Country', 'TIME', 'Value'],
                              parse_dates=True
                             )

df_gdp_hour_worked = df_gdp_hour_worked.sort_values('Value', ascending=False)

df_gdp_hour_worked = df_gdp_hour_worked.drop(df_gdp_hour_worked[df_gdp_hour_worked['LOCATION']=='EU27_2020'].index)

df_gdp_hour_worked.head()

Out[2]:

	LOCATION	Country	TIME	Value
580	IRL	Ireland	2020	121.751868
784	LUX	Luxembourg	2020	111.758087
579	IRL	Ireland	2019	109.617670
783	LUX	Luxembourg	2019	106.010826
782	LUX	Luxembourg	2018	105.443137

Plotting¶

Bar plot¶

In [3]:

fig_bar = px.bar(df_gdp_hour_worked.query("TIME==2020"), 
             x="Country", 
             y="Value", 
             hover_name="Country", 
             color="Value",
             color_continuous_scale=px.colors.sequential.Magenta, 
             labels={'Value':'GDP ($/hour worked)', 'Country':''}, 
             title="<b>Contribution to GDP in USD per person and hour worked in 2020 in a selection of countries</b><br>" + 
             "<i>Source : OECD</i>"
            )

fig_bar.update_coloraxes(showscale=False)

# Style
fig_bar.update_layout(
    font_family='Helvetica',
    font_color='grey',
    font_size=12,
    title_font_size=20,
    xaxis_tickangle=-45
)

fig_bar.show()

Scatter plot¶

Now, let's see the evolution of labour productivity for a selection of countries over the years.

In [4]:

df_gdp_hour_worked_scatter = df_gdp_hour_worked.sort_values(by=['TIME', 'LOCATION'], ascending=True)
             
df_gdp_hour_worked_scatter.head()

Out[4]:

	LOCATION	Country	TIME	Value
0	AUS	Australia	1970	5.762347
77	BEL	Belgium	1970	5.261655
128	CAN	Canada	1970	6.067352
1175	CHE	Switzerland	1970	7.462724
360	DEU	Germany	1970	4.838160

In [5]:

df_gdp_hour_worked_us = df_gdp_hour_worked_scatter.query("Country == 'United States'")
df_gdp_hour_worked_fr = df_gdp_hour_worked_scatter.query("Country == 'France'")
df_gdp_hour_worked_ca = df_gdp_hour_worked_scatter.query("Country == 'Canada'")
df_gdp_hour_worked_uk = df_gdp_hour_worked_scatter.query("Country == 'United Kingdom'")
df_gdp_hour_worked_de = df_gdp_hour_worked_scatter.query("Country == 'Germany'")
df_gdp_hour_worked_it = df_gdp_hour_worked_scatter.query("Country == 'Italy'")
df_gdp_hour_worked_jp = df_gdp_hour_worked_scatter.query("Country == 'Japan'")

In [6]:

fig_scatter = go.Figure(data=[
    go.Scatter(
        name='United States',
        x=df_gdp_hour_worked_us['TIME'], 
        y=df_gdp_hour_worked_us['Value'],
        marker_color=df_gdp_hour_worked_us['Value'],
        text=df_gdp_hour_worked_us['Country']
    ),
    
    go.Scatter(
        name='France',
        x=df_gdp_hour_worked_fr['TIME'], 
        y=df_gdp_hour_worked_fr['Value'], 
        marker_color=df_gdp_hour_worked_fr['Value'], 
        text=df_gdp_hour_worked_fr['Country']
    ),
    
    go.Scatter(
        name='Canada',
        x=df_gdp_hour_worked_ca['TIME'], 
        y=df_gdp_hour_worked_ca['Value'], 
        marker_color=df_gdp_hour_worked_ca['Value'], 
        text=df_gdp_hour_worked_ca['Country']
    ),
    
    go.Scatter(
        name='United Kingdom',
        x=df_gdp_hour_worked_uk['TIME'], 
        y=df_gdp_hour_worked_uk['Value'], 
        marker_color=df_gdp_hour_worked_uk['Value'], 
        text=df_gdp_hour_worked_uk['Country']
    ),   
    
    go.Scatter(
        name='Germany',
        x=df_gdp_hour_worked_de['TIME'], 
        y=df_gdp_hour_worked_de['Value'], 
        marker_color=df_gdp_hour_worked_de['Value'], 
        text=df_gdp_hour_worked_de['Country']
    ), 
    
    go.Scatter(
        name='Italy',
        x=df_gdp_hour_worked_it['TIME'], 
        y=df_gdp_hour_worked_it['Value'], 
        marker_color=df_gdp_hour_worked_it['Value'], 
        text=df_gdp_hour_worked_it['Country']
    ),
    
    go.Scatter(
        name='Japan',
        x=df_gdp_hour_worked_jp['TIME'], 
        y=df_gdp_hour_worked_jp['Value'], 
        marker_color=df_gdp_hour_worked_jp['Value'], 
        text=df_gdp_hour_worked_jp['Country']
    ),
])


#Style
fig_scatter.update_layout(
    title='<b>Contribution to GDP per person and hour worked in G7 countries from 1970 to 2020 in USD</b><br>' + 
    '<i>Source : OECD</i>',
    font=dict(
        family='Helvetica',
        size=14,
        color='grey'
    ),
    legend=dict(
        x=0.825,
        y=0,
        bgcolor='rgba(255, 255, 255, 0)',
        bordercolor='rgba(255, 255, 255, 0)'
    ),
    yaxis=dict(
        title='GDP ($/hour worked)'
    )
)

fig_scatter.show()

Sources¶

OCDE.Stat data :

GDP per hour worked indicator : OECD (2021), GDP per hour worked (indicator). doi: 10.1787/1439e590-en (Accessed on 17 October 2021)

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