Jagjit Chadha's picture
Affiliation: 
National Institute of Economic and Social Research
Credentials: 
Professor of economics

Voting history

Levelling Up Productivity Gaps in the UK

Question 2: Which policies could best help reduce regional productivity disparities?

Answer:
Other or no opinion
Confidence level:
Very confident
Comment:
Again. All of the above. Let uis take these as a set of interventions that if appropriately targetted and calibrated woudl help. The missing factor than is a commitment to delivery of these objectives over the long run, so that firms and households believe that a significant shift productivity prospects will occur and then act accordingly. We ned to create a focal point around a markedly different equilibrium.

Question 1: What is the primary factor driving regional productivity disparities in the UK?

Answer:
Other or no opinion
Confidence level:
Very confident
Comment:
All of the above. A systematic failure to address shortages in capital (human, physical and financial) across the country. As much as anything this secualr failure has resulted from a policy churn in the UK that has focussed on crisis management rather than seeking long run solutions and mechanisms that will tie the hands of successive waves of political leadership. The first report of the UK Productivity Commission is clear on these points: https://www.niesr.ac.uk/publications/productivity-uk-evidence-review?type=uk-productivity-commission

Prospects for UK Economic Growth

Question 2: What is the most important contribution economic policymakers can make growth in the UK over the next decade? 

Answer:
Other or don't know
Confidence level:
Very confident
Comment:
Start thinking about and preparing for the long run. Shor termist crisis management plagues economic policy in the UK and time and again constrains options in the face of successive crises. So all of the above in a new longer term framework.

Question 1: How do you see prospects for future (per capita) GDP growth in the UK in the next decade?

Answer:
Low growth because of UK-specific structural challenges
Confidence level:
Very confident
Comment:
The UK has not prepared the conditions for a sustained improvement in productivity with shortages in investment, skills, infrastructure and domestic finance. Brexit has also not yet delivered the improved trading prospects with the rest of world and seems unlikely to be able to do so in the immediate future.

Towards a High-Wage, High-Productivity Economy

Question 2: What is your evaluation of the following statement: “A well-designed government-stipulated wage increase can lead to higher productivity”?

Answer:
Neither agree nor disagree
Confidence level:
Confident
Comment:
If it is well-designed then policy will meet its objective. But I wonder if the objective of government set wages is productivity? It is not: it is to offset the monopsony of employers and ensure a more equal distribution of income.

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