Long-term growth from a productivity and employment perspective

Abstract

In developed economies, the recovery from the financial crisis has been exceptionally arduous and productivity development in particular has been very subdued. Speculation has abounded as to whether economic growth will stay low on a more permanent basis. At the same time, global trends in international trade and technological development are reshaping production and employment structures. Accelerated automation and a decline in labour income share have raised concerns about decreasing employment, contracting wages and increasing inequality in the long term.