Italy’s productivity has been stagnant since the late 1990s. This column argues that public sector inefficiency could be partially responsible for the country’s low labour productivity. The evidence suggests that Italy could realise significant macroeconomic productivity gains if average public sector efficiency were to improve from its current faltering levels.
Raffaela Giordano, Sergi Lanau, Pietro Tommasino, Petia Topalova, 04 August 2015
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