Productivity slowdown and inequality : killing two birds with one stone!

More than ten years on from the start of the global financial crisis (GFC) the global economic context continues to be challenging, with economic growth still below its historical trend in advanced economies and slowing in emerging markets. We witness also a worrying slowdown in productivity growth, which predates the GFC. A related concern is that this decline in productivity growth has coincided with persistently high inequalities of income, wealth and well-being in general. This, in turn, implies that we should not take it for granted that technological advances will automatically lead to better economic performance and stronger productivity growth.This contribution will argue we should have a broader and more inclusive approach to productivity growth and inequality. There should be more investment in the skills of people to expand the productive assets of an economy. Further polices are discussed to ensure that productivity growth benefits all parts of society.