The Covid-19 Pandemic and the Productivity Paradox

Abstract

The Covid-19 pandemic has created dramatic changes in how organizations function and people work. The application of new technologies has been expedited by the crisis. This article explores what effects this may have on future productivity growth. The results of the transformation of work may provide some answers to “the productivity paradox” – that is, the slow growth of productivity in recent years despite the deployment of new information and communication technologies. A new approach to measuring productivity is proposed. Some behavioral effects of the pandemic on productivity are discussed. Policies to further the productivity benefits arising from the pandemic are suggested.