The collapse of investment in the wake of the crisis has exacerbated a long-standing labour productivity slowdown attributable to low technical progress. Policy priorities to raise productivity involve speeding up the resolution of banks' non-performing loans, improving the selection process and execution of public infrastructure projects, raising public administration efficiency, and enhancing business dynamism and innovation.
- Further streamline bankruptcy procedures with an organic reform of the bankruptcy law to reduce the length and cost of debt recovery and to enhance business dynamism.
- Improve the efficiency of the public administration; further streamline the court system, with more specialisation where appropriate; increase the use of mediation.
- Enhance the efficiency of the tax structure; an overly complex tax code, which results in high tax evasion, and numerous and unjustified tax exemptions distort economic activity.
- Facilitate modification of national wage agreements at the firm level, through agreements with representatives of a majority of the firm’s employees.
- Open local public services to competition.
Source: OECD May 2017 Economic Outlook database
Linarello, A. and A. Petrella (2017), “Productivity and Reallocation: Evidence from the Universe of Italian Firms”, International Productivity Monitor, No 32 Spring 2017.
Banca d’Italia (2017), “Productivity in Italy: Performance and Determinants”, Banca d’Italia 2016 Annual Report.
Calligaris S. (2015), " Misallocation and Total Factor Productivity in Italy: Evidence from Firm-Level Data", Labour, Vol. 29(4), 367–393.
Giordano, R., S. Lanau, P. Tommasino and P. Topalova (2015), "Does Public Sector Inefficiency Constrain Firm Productivity: Evidence from Italian Provinces" IMF Working Paper WP/15/18.
Hassan, F. and G. Ottaviano (2013), Productivity in Italy: The Great Unlearning.
OECD (2012), "Italy: Reviving Growth and Productivity", OECD Better Policy Series.
Productivity - enhancing institutions