Labour productivity latest publications
With changes to labor regulations being proposed, priority should be given to addressing structural challenges that have not been resolved by the reforms that have taken place in recent years. Among these factors that are embedded in the Spanish economy is productivity.
Labor productivity in Spain is counter-cyclical, unlike in the majority of developed economies. This phenomenon is mainly due to the poor functioning of the labor market. There is an urgent need to adopt reforms to boost sustained productivity growth
In this paper, the productivity of the public sector in Spain is analyzed comparatively. Although the public sector is not the main cause behind the negative behavior of productivity in Spain, there is ample room for improvement to reach the levels of efficiency and effectiveness presented by the rest of the main peers.
The General Purpose Technology advancements, Information Communication Technology and digitization, are the common factors behind three major trickle-down structural contributors to stagnant real wage growth – low productivity growth, the decline in labor income share, and the rise in wage growth distribution inequality.
The prospects for the Portuguese economy are positive, although the country still has significant imbalances that could slow the pace of recovery if the reforming zeal shown in the past few years is not maintained.