Raising productivity in low-wage sectors and reducing poverty
April 2018, Anne Green, Paul Sissons, Amir Qamar and Kevin Broughton.
Low pay is a critical social issue and low wage sectors contribute to the productivity gap between the UK and comparable countries. Raising productivity in such sectors is one possible mechanism through which the prevalence of low pay might be reduced. Better understanding the relationship between productivity and pay, particularly for low earners, is therefore critical in addressing the low pay problem.
This report looks at the role productivity plays in employers’ wage-setting decision-making in low-wage sectors. It asks how employers think about,understand and measure productivity and what role productivity plays in employers’ wage-setting decisions among other factors. With the National Living Wage emerging as being of prime importance in wage-settingdecisions, the key question is: How can productivity be improved to justifyincreases in wages?
You can find out more about this work in these blogs:
Raising Productivity in Low-wage Sectors and Reducing Poverty
City-REDI Blog, 2 May 2018
Boosting Productivity to Reduce Low Pay
City-REDI Blog, 9 April 2018