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The Effect of Brexit on UK Productivity: Synthetic Control Analysis

Farid, Moatazbellah (2020): The Effect of Brexit on UK Productivity: Synthetic Control Analysis.

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Abstract

In this paper I analyse the effect of Brexit on UK labour productivity and its components using a synthetic control methodology. My results show that the Brexit vote had a negative impact on labour productivity, causing GDP per hour worked to decrease by 2.4% by 2019 in comparison to the absence of Brexit. The two components of labour productivity are GDP and hours worked. I find that the decrease in the GDP is more than the increase in hours worked per person, causing the labour productivity to decline

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