What are the most effective ways to improve productivity growth in the US?
Productivity growth is the key driver of long-term economic prosperity and living standards. It measures how efficiently inputs, such as labor and capital, are transformed into outputs, such as goods and services. The US has experienced a slowdown in productivity growth since the early 2000s, which has contributed to lower wage growth, reduced competitiveness, and increased inequality. In this article, you will learn about some of the most effective ways to improve productivity growth in the US, based on economic theory and evidence.