What does this mean for policy?

How can policy-makers address the Productivity-Inclusiveness Nexus? What is the best way to promote synergies between faster productivity growth and greater inclusiveness? How can compensatory measures be employed to deal with trade-offs? This chapter sets out the beginnings of a policy framework to address the multiple interactions between inequalities and productivity and how these interactions play out across countries, regions, firms and between individuals. The overarching aim of the chapter is to provide guidance for policymakers on how to ensure that all individuals, firms and regions are empowered to both contribute to and benefit from improved productivity growth. It begins by examining how policy can support individuals as they strive to fulfil their productive potential, before looking at how policy can help all firms to become more productive whilst also promoting inclusive growth. It then goes on to consider how changes to policy-making at the local and regional levels can make a difference, before finally exploring the need for strong public governance, including a whole-of-government approach to avoid piecemeal policymaking and unintended consequences.