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Tis paper is a literature review focusing on human capital, skills ofemployees, demographic change, management, training and their impact onproductivity growth. Intrafirm behaviour has been recognized as a potentiallyimportant driver for productivity. Results from surveys show that managementpractices have become more structured, in the sense of involving more datacollection and analysis. Furthermore, a strong positive correlation between themeasured management quality and firm performance can be observed. Studiessuggest that there is a positive association between management score andproductivity growth. The lack or low level of employees' skills andqualifications might be in different ways a possible explanation for theobserved slowdown of productivity growth. The main reason for the decline inskilled labor is the demographic change. Construction sectors are increasinglyaffected by demographic developments. Labour reserves in construction arelargely exhausted. Shortage of qualified workforce is impacting project cost,schedules and quality.

Productivity development in the construction industry and human capital: a literature review