Welcome to the 2021 Annual Conference of the Global Forum on Productivity joint with the Italian G20 Presidency Laurence Boone Chief Economist of the OECD Venice, Italy | 8th July 2021
Annual GFP Conferences since 2015
Challenges to long-term growth beyond COVID-19 • `Hope is gradually becoming reality’ in many countries
GDP in OECD countries projected to remain at lower growth path post-COVID-19
• But the recovery is uneven across countries… • … and may leave many economies on a permanently lower growth path… • …adding to already low productivity growth due to long-standing challenges Crucial to boost productivity growth! Source: OECD Economic Outlook (2021)
OECD GFP research contributes to uncovering the drivers of productivity • Productivity slowdown coincides with polarisation of the business environment
Large potential for productivity gains through catch-up to domestic frontier
• To learn how to boost aggregate productivity we must look at differences in firm performance at the micro-level • OECD and the GFP are at the forefront of collecting and analysing cross-country microdata to uncover drivers of productivity
Source: OECD GFP calculations for the Human Side of Productivity
Productivity builds on people GFP research project “Human Side of Productivity”:
Human factors are crucial to explain productivity gaps to the frontier
• New cross-country dataset with detailed info on firms and their workers • Uncovering the role of the workforce composition (skills, managers, diversity) for firm productivity • Differences in workforce composition explain around 1/3 of productivity gap between medium and top performer
Source: OECD GFP calculations for the Human Side of Productivity
Widespread telework as the “new normal” GFP survey on telework and productivity:
Telework expected to remain permanently high after COVID-19
• COVID-19 may catalyse permanent adoption of widespread telework • New evidence from GFP survey from managers and workers about experiences and expectations with telework Source: OECD GFP calculations based on online survey in cooperation with TUAC and BIAC
Widespread telework as the “new normal” GFP survey on telework and productivity:
Most managers expect future telework to improve performance
• COVID-19 may catalyse permanent adoption of widespread telework • New evidence from GFP survey from managers and workers about experiences and expectations with telework • Telework stands to raise productivity and welfare but challenges must be met
Source: OECD GFP calculations based on online survey in cooperation with TUAC and BIAC
Future GFP research – a tale of two inputs Building on the Human Side of Productivity to explore role of differences in firm performance for productivity growth:
Investing in people
Investing in capital
Getting the right employees & implications for allocation
Building up tangible and intangible capital in uncertain times
Complementarities: investing in people and capital together
Thank you
oe.cd/gfp
Productivity@OECD.org