The UK has grown at a robust pace in recent years but has shown weak productivity growth since 2007. In particular, gains in multifactor productivity have been subdued, despite comparatively high investment in knowledge-based capital and a business environment generally favourable to entrepreneurship, in addition to flexible labour and product markets. Boosting productivity requires that a number of common structural challenges be addressed, in particular in the areas of educational outcomes – to ensure that educational qualification translates into skills -- public spending efficiency and public infrastructure. For instance, the performance of high-school students in PISA tests in science and reading proficiency is only around the international average and with a tendency to show a high variation across students. Improving access to education at all levels would help to raise equality of opportunities and social mobility.
1. PISA is the Programme for International Student Assessment.
Source: OECD (2014), PISA 2012 Results: What Students Know and Can Do (Volume I, Revised edition, February 2014): Student Performance in Mathematics, Reading and Science, PISA.
Previous Going for Growth recommendations include:
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Recent policy actions in these areas include:
The report also discusses the possible impact of structural reforms on other policy objectives (fiscal consolidation, narrowing current account imbalances and reducing income inequality). In the case of the United Kingdom, improved equity in education and skills among young people, in association with stronger and better active labour market policies, can enhance social integration and reduce income inequality. |
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