Trend productivity growth has been zero for several years. To bolster falling private R&D introduce immediate R&D expenditure refunds and carry-forward of losses for tax deduction purposes.  Reduce barriers to labour mobility and skills mismatch.

  • Better evaluate the effectiveness of public R&D spending and strengthen the co-operation between enterprises and research institutions.
  • Reduce grade repetition in secondary education, provide more school autonomy and better monitor education quality.
  • Increase competition in the non-financial services sector.
  • Reduce disincentives to work for older workers and introduce separate income tax assessment of second earners.

Productivity - Luxembourg

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



Key publications

Ferdy Adam and Véronique Sinner (2012) “An examination of Luxembourg’s relative labour productivity performance vis-à-vis the euro area since the crisis”, Economie et Statistiques Working papers du STATEC N° 60.

 Umut Kilinç (2014), “Factor allocation and firm-level productivity dynamics in the manufacturing sector”, Economie et Statistiques Working papers du STATEC N° 71.


Institutions icon Productivity - enhancing institutions

Conseil de la Concurrence – a competition authority, reformed 2012, President and 3 Councillors.

Conseil Economique et Social – an advisory body, a tripartite permanent consultation body, founded 1966, reformed in 2014. 39 members, 18 representing each employers and employees, and 3 representing the government.

Competitiveness Observatory (Observatoire de la Compétitivité) –standing enquiry body, an independent unit within the Ministry of Economy; Chair and 4 members.

STATEC Research RED – publicly funded research unit (within the national statistical office) – 8 researchers


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