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By Michel VERLAINE, ICN Business School*
Labour productivity is obviously an important determinant of long run per-capita output growth. It is also a concept that is often misunderstood by lay people and can thus potentially be used by political decision makers to manipulate and influence wage negotiations. Especially as productivity growth internationally, at least in most developed countries, has been slowing down. It is thus important, not only to understand the process and determinants of the slowing down, but also the concept which does not have much to do with the “inherent” productivity of workers.
Low productivity might be the result of mismanagement that is not the result of low worker productivity at the individual level. This is...
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