WED_AdelajdaSoltysik_Reframing-Productivity.pdf

1、Reframing ProductivityReframing ProductivityPromises,assumptions,their flaws and alternativesPromises,assumptions,their flaws and alternativesAdelajda SoltysikAdelajda SoltysikSenior Adviser,Centre for Policy DevelopmentSenior Adviser,Centre for Policy DevelopmentLabour productivity definition(usual

2、)Labour productivity definition(usual)=output per worker=total output /total employment=Total output(usually real GDP or GVA)Total hours worked Promise:raise living standardsProductivity Jobs Wages Assumption:Assumption:Productivity growth increases jobs,and higher labour demand boosts wages.Promise

3、s&AssumptionsPromises&Assumptions=Assumption 1Assumption 1Productivity leads to more jobs.Reality:Reality:Depends on marginal productivity;automation often replaces labour(self-checkout example).Assumption 2Assumption 2Jobs leads to higher wages.Reality:Reality:Only when workers have power.Monopsony

4、 and weak bargaining suppress wages.Promises&AssumptionsPromises&AssumptionsAssumption 3Assumption 3Higher wages mean better living standards.Reality:Reality:Rising incomes dont automatically translate to wellbeing-quality of life depends on how gains are shared,time,health,and sustainability.Lesson

5、s from HistoryLessons from HistoryShared prosperity emerged Shared prosperity emerged only when,the direction of only when,the direction of technological advances and technological advances and societys approach to dividing the societys approach to dividing the gains were pushed away from gains were

6、 pushed away from arrangements that primarily arrangements that primarily served a narrow elite.”served a narrow elite.”17501750 1850:Industrial Revolution1850:Industrial RevolutionProductivity surges but wages stagnate;child labour&Productivity surges but wag