The fall in productivity in the UK following the Great Recession was particularly bad, whereas the hit to jobs was less severe. This column discusses recent research exploring this puzzle. Although the mystery has not been fully solved, an important part of the explanation lies in the flexibility of wages combined with very low investment. […]
About John Van Reenen and João Paulo Pessoa
John Van Reenen is Director of the Centre for Economic Performance, Professor of Economics at the London School of Economics and CEPR Research Fellow. João Paulo Pessoa is a PhD candidate in economics, London School of Economics and Political Science.