The Current State of Research on the Two-way Linkages between Productivity and Well-being

Andrew Sharpe and Shahrzad Mobasher Fard

No 2022-03, CSLS Research Reports from Centre for the Study of Living Standards

Abstract: Interest in the topic of well-being has burgeoned in recent years as the weaknesses of gross domestic prod-uct (GDP) per capita as a proxy for well-being have become more apparent. At the same time, the global economy has experienced a productivity slowdown. Since productivity growth is recognized as being by far the most important long-term source of sustainable gains in living standards, this development has impli-cations for the future of living standards around the world. These two developments raise a number of issues related to the two-way linkages between productivity and well-being. First, does slower productivity growth constitute a significant threat to the betterment of the well-being of the world’s population, and, if so, by how much? Second, given that many indicators of well-being can have positive effects on productivity, should one aspect of any strategy to revive productivity growth be to focus on policies that improve well-being? The objective of this report is to survey the current state of research on the two-way linkages between productivity and well-being.

Keywords: productivity; well-being; two-way linkages; living standards; GDP; subjective well-being; health; ILO; productivity slowdown (search for similar items in EconPapers)
Date: 2022-03
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