That is small only in the context of the rapid growth of the total. In part, the higher reported gains in TFP, compared to the prior studies, are a direct result of a lower estimate of the gains in labor quality. Improvements in the educational attainment of the workforce add 0.3 percentage points to the average growth rate. The improvement in TFP has
been more substantial in the post-crisis years, 2.1 percent annually in the 1999-2004 period. Those gains undoubtedly include a cyclical component; but the reduced contribution of capital is very noticeable.