Title page

Contents

Abstract/Résumé 4

Introduction: A critical conjuncture 6

Slow productivity growth and high inequality: stylised facts 6

Improving productivity and taming inequality: policy pillars 13

Unlocking skills development for all 14

Supporting inclusive, adaptive, and resilient labour markets 16

Boosting business dynamism and technology diffusion, curbing market power 19

Enhancing the effectiveness of taxes and transfers in reducing inequalities 21

International cooperation for an inclusive and sustainable globalisation 23

References 24

Figure 1. The slowdown in productivity growth and catch-up 8

Figure 2. The divergence in productivity dynamics across firms and the disconnect between productivity and average worker's pay 10

Figure 3. Real wages decreased due to inflation spikes but are regaining lost ground, especially in low-pay industries 11

Figure 4. Progress in income inequality reduction is slow and non-homogenous across countries 12

Figure 5. Students' performance has declined and the gap between advantaged and disadvantaged students has widened 13

Figure 6. NEET: young individuals not in employment nor in formal education or training 14

Figure 7. Gender gaps in labour market outcomes remain large 17

Figure 8. Informal work remains predominant in several emerging economies 18

Figure 9. Barriers to business entry remain high in many G20 economies 20

Figure 10. Redistribution through taxes and transfers varies widely across OECD countries, even for similar levels of pre-tax inequality and GDP per capita 22