The level of productivity is high, but productivity growth has been weak for several decades. Quickly implementing the foreseen quality assurance and guidance systems for training would help foster the inclusion of low-skilled workers in the workplace by strengthening their productivity. Greater legal certainty for dismissals would make firms more willing to hire and take chances on expansion offering more stable jobs. Easing entry into a wider range of regulated professions would enhance competition and productivity, thereby lowering prices to the benefit of consumers, especially poor ones.
- Engage an independent institution to conduct a thorough review of all existing and proposed regulations affecting firms, applying the OECD Competition Assessment Toolkit principles.
- Continue to liberalise the regulated professions by: reducing entry requirements to those needed to protect the public; narrowing professions’ exclusive rights; eliminating regulated tariffs in potentially competitive activities; and gradually abandoning quotas.
- Remove entry barriers in potentially competitive segments of network industries.
- Combat school failure at an early stage, limit grade repetition drastically, and develop individualised instruction. Improve teachers’ training by focusing on knowledge transmission and creativity, and boost incentives to attract high-quality teachers in disadvantaged schools.
- In secondary vocational education hire teachers who combine teaching with professional experience outside education, and provide workplace trainers with pedagogical training.
- Use the envisaged quality-assurance system to introduce the certification of providers of adult learning and continuing vocational education. Ensure regions have sufficient capacity and financing to co-ordinate the new vocational trainee guidance service.
Source: OECD June 2016 Economic Outlook database; OECD, Income Distribution and Poverty database; and OECD Secretariat calculations from EU-SILC – preliminary results.
P. Artus and G. Cette (2004), Productivité et Croissance, Rapport du Conseil d’analyse économique, No 48.
A. Bergeaud, G. Cette and R. Lecat, «Le produit intérieur brut par habitant sur longue période en France et dans les pays avancés: le rôle de la productivité et de l’emploi », Économie et Statistique, no 474, pp. 5-34.
Productivity - enhancing institutions
Conseil d’Analyse Économique
Banque de France