Attention Economy


Wednesday, December 4, 2024

Education, Human Capital and Productivity

From decline to revival: Policies to unlock human capital and productivity
https://cepr.org/voxeu/columns/decline-revival-policies-unlock-human-capital-and-productivity
The question of why productivity growth slowed from the early- to mid-2000s continues to interest policymakers, but researchers have paid less attention to the role of human capital accumulation. This column suggests that one-sixth of the productivity slowdown in OECD countries can be accounted for by slowing human capital accumulation, and that the use of digital devices in school is a major factor in children’s worsening test scores. Education policy reforms to reverse the trend will play out over long time horizons, but structural reforms to enhance labor market reallocation and adaptability could boost productivity in the shorter term.