We know how to boost productivity and lift wages – but it will take time and much tougher tax reform
- Written by John Hawkins, Senior Lecturer, Canberra School of Politics, Economics and Society, University of Canberra
The slide in Australia’s labour productivity – real gross domestic product per hour worked – has become a real concern. In the past year, labour productivity has fallen 4.6%.
Unless it resumes growing, either wage growth will need to slide to the Reserve Bank’s inflation target of 2-3% on average over time, or the bank will...
