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The Quality of Manufactured Products in Britain and Germany

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  • Valerie Jarvis
  • S. J. Prais

Abstract

This paper is concerned with the relation between workforce skills and high-quality production. Detailed investigations of specific products sampled from three industries indicate that the average British-made product embodied fewer quality-features than its German-made counterpart, and that Britain produces little of top-quality grades—in contrast to a strong German presence at that end of the market. These findings were based on factory visits and discussions with trade experts in both countries. Two broad aspects of workforce skills which contribute to higher-quality production were identified: (1) the skills relevant at the design-interface between consumer demand and production realities, and (2) the skills relevant to small and medium-sized batch-production of specialised varieties. Existing comparisons based on official statistics of production and prices do not take adequate account of differences in product-quality. Based on a close matching of quality-grades of ten sampled products, proper adjustment for quality differences across countries would substantially increase estimates of the German real productivity advantage in manufacturing (to around 50% over Britain), and raise estimates of real income per head for Germany to some 40% over Britain.

Suggested Citation

  • Valerie Jarvis & S. J. Prais, 1997. "The Quality of Manufactured Products in Britain and Germany," International Review of Applied Economics, Taylor & Francis Journals, vol. 11(3), pages 421-438.
    • Handle: RePEc:taf:irapec:v:11:y:1997:i:3:p:421-438
    DOI: 10.1080/02692179700000027
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    References listed on IDEAS

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    1. Valerie Jarvis & S.J. Prais, 1989. "Two Nations of Shopkeepers: Training for Retailing in France and Britain," National Institute Economic Review, National Institute of Economic and Social Research, vol. 128(1), pages 58-74, May.
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    4. Oulton, Nicholas, 1995. "Do UK Price Indexes Overstate Inflation?," National Institute Economic Review, National Institute of Economic and Social Research, vol. 152, pages 60-75, May.
    5. Murray Foss & Marylin Manser & Allan Young, 1993. "Price Measurements and Their Uses," NBER Books, National Bureau of Economic Research, Inc, number foss93-1.
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    7. Prais,S. J., 1995. "Productivity, Education and Training," Cambridge Books, Cambridge University Press, number 9780521556675, September.
    8. Helvia Bierhoff & SJ Prais, 1993. "Britain's Industrial Skills and the School-Teaching of Practical Subjects: Comparisons with Germany, the Netherlands and Switzerland," National Institute Economic Review, National Institute of Economic and Social Research, vol. 144(1), pages 55-73, May.
    9. Cowling, Keith & Cubbin, John, 1972. "Hedonic Price Indexes for United Kingdom Cars," Economic Journal, Royal Economic Society, vol. 82(327), pages 963-978, September.
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    11. Geoff Mason & Bart van Ark & Karin Wagner, 1994. "Productivity, Product Quality and Workforce Skills: Food Processing in Four European Countries," National Institute Economic Review, National Institute of Economic and Social Research, vol. 147(1), pages 62-83, February.
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    13. Robert J. Gordon, 1990. "The Measurement of Durable Goods Prices," NBER Books, National Bureau of Economic Research, Inc, number gord90-1.
    14. repec:sae:niesru:v:128:y::i:1:p:58-74 is not listed on IDEAS
    15. Murray Foss & Marilyn Manser & Allan Young, 1993. "Introduction to "Price Measurements and Their Uses"," NBER Chapters, in: Price Measurements and Their Uses, National Bureau of Economic Research, Inc.
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    2. Mingge Tian & Gemma Cànoves & Yujing Chu & Jaume Font-Garolera & José María Prat Forga, 2021. "Influence of Cultural Background on Visitor Segments’ Tourist Destination Image: A Case Study of Barcelona and Chinese Tourists," Land, MDPI, vol. 10(6), pages 1-20, June.
    3. Kerstin Pull, 2002. "Labour Market Regulation and Foreign Direct Investment: US multinationals in Germany and the UK," IAAEG Discussion Papers until 2011 200204, Institute of Labour Law and Industrial Relations in the European Union (IAAEU).

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