Treasury policy perspectives on productivity
The conference presentation, Treasury policy perspectives on productivity, was presented by Graeme Davis from the Treasury, at the Productivity Perspectives 2004 conference.
The decomposition of GDP per capita into the 3 Ps (Population, Participation and Productivity) makes it clear that labour productivity plays a central role in determining our standard of living. When these components of GDP per capita for Australia are compared with those of the United States over the last 20 years, it is apparent that the catch-up in GDP per capita that Australia has experienced is primarily attributable to catch-up in labour productivity. The remaining gap in per capita incomes is also primarily attributed to labour productivity. It would seem that catch-up in the productivity levels between Australia and the United States offers the potential to raise further Australia’s GDP per capita. This presentation looks at the extent to which existing data helps explain the gap in the level of labour productivity between Australian and the United States with a view to exploring the additional question: ‘To what extent can policy be used to close this productivity gap?’
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