The collapse of investment in the wake of the crisis has exacerbated a long-standing labour productivity slowdown attributable to low technical progress. Policy priorities to raise productivity involve speeding up the resolution of banks' non-performing loans, improving the selection process and execution of public infrastructure projects, raising public administration efficiency, and enhancing business dynamism and innovation.

  • Further streamline bankruptcy procedures to reduce the length and cost debt recovery soa s to enhance business dynamism.
  • Improve the efficiency of the public administration; further streamline the court system, with more specialisation where appropriate; increase the use of mediation;
  • Enhance the efficiency of the tax structure; an overly complex tax code, which results in tax evasion, and numerous and unjustified tax exemptions distort economic activity
  • Allow for modification of national wage agreements at the firm level, through agreement with representatives of a majority of the firm’s employees.
  • Reduce barriers to competition especially in insurance, banking, network industries, the regulated professions and retail trade; eliminate ownership links between local government and service providers so as to strengthen competition into local public services.

Productivity - Italy

Source: OECD June 2016 Economic Outlook database; OECD, Income Distribution and Poverty database; and OECD Secretariat calculations from EU-SILC – preliminary results.


Key publications

Calligaris S. (2015), " Misallocation and Total Factor Productivity in Italy: Evidence from Firm-Level Data", Labour, Vol. 29(4), 367–393.

Giordano, R., S. Lanau, P. Tommasino and P. Topalova (2015), "Does Public Sector Inefficiency Constrain Firm Productivity: Evidence from Italian Provinces" IMF Working Paper WP/15/18.

Hassan, F. and G. Ottaviano (2013), Productivity in Italy: The Great Unlearning.

OECD (2012), "Italy: Reviving Growth and Productivity", OECD Better Policy Series.


Institutions icon Productivity - enhancing institutions

There is no single institution dedicated to productivity in Italy. The Ministry of Economy and Finance and the Bank of Italy, among others institutions, provide analysis on productivity issues.


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