G-P15 · TOPIC · inclusive-productivityGCRI dossier · service level R0
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Topic dossier · Economic Development

Inclusive productivity

Productivity, the output produced per worker or per unit of input, drives long-run living standards. In many economies a small group of firms and places pull ahead while most lag, and gains do not reach workers evenly. This page sets out how productivity grows and spreads, why it often stays concentrated, how it is measured, and what evidence serves the ministries and agencies that seek growth whose gains are widely shared.

Systems · around this subjectDesign, not a record

Shock propagation model

Inclusive productivity · National economy · Scenario: import price shock

Output loss above thresholdGCRI · Economic Development

Output impact by channel

Most affected sectors

Food processing▼ 93288Backward
Transport▼ 51016Forward
Construction▼ 41920Backward
Retail▼ 210,543Demand

Fiscal room

local units, billions, illustrative

Revenue loss1.8Support measures1.2Contingency reserve3.3 · req 2.5
Shock propagation model: the screen's structure, terms and states for Inclusive productivity.Placeholder names and illustrative values; a design, not a record or a live system.

Fig.Shock propagation model. Design wireframe with placeholder names and illustrative values, not a record or a live system.

01In brief

The short answer.

Inclusive productivity is productivity growth whose gains reach workers, firms and regions widely. In many economies frontier firms pull ahead while others lag, workers move slowly between sectors, credit and land are misallocated, and wages rise only where labour markets let workers capture gains.

02Geography

Activity and hazards in Africa.

For inclusive productivity, in GCRI's spatial-intelligence reading, the map opens on population density, night lights and true-colour imagery with true colour from NASA GIBS, framed on Africa; every other NASA layer, live feed and forecast waits in the layer list.

The interactive map needs JavaScript; the layer list and sources are below.

Layers 3

Activity and hazards, for this page

Latest available

NASA GIBS / EOSDIS · ASTER GDEM (METI, NASA) · Blue Marble (NASA) · © OpenStreetMap contributors (ODbL) · Natural Earth

Loading the latest NASA imagery.

Drag to move. Ctrl or ⌘ and scroll, pinch or the buttons to zoom; hover for the values under the pointer; reset returns to the region.

For inclusive productivity, in GCRI's spatial-intelligence reading, the map opens on population density, night lights and true-colour imagery with true colour from NASA GIBS, framed on Africa; every other NASA layer, live feed and forecast waits in the layer list.Satellite and model products as NASA publishes them, each with its own date; indicators, not assessments of any place; claim ceiling INTEGRATED.

Data: NASA GIBS · ASTER GDEM · Blue Marble · © OpenStreetMap contributors · Natural Earth · GDACS · Copernicus Sentinel-2 L2A · NASA HLS S30Sources and licences

  • We acknowledge the use of imagery provided by services from NASA's Global Imagery Browse Services (GIBS), part of NASA's Earth Science Data and Information System (ESDIS). Colours redrawn from the published colour map; values averaged into H3 cells where shown (modified). NASA open data
  • We acknowledge the use of imagery provided by services from NASA's Global Imagery Browse Services (GIBS), part of NASA's Earth Science Data and Information System (ESDIS). Colours redrawn from the published colour map; values averaged into H3 cells where shown (modified). NASA open data
  • Center for International Earth Science Information Network (CIESIN), Columbia University. 2018. Gridded Population of the World, Version 4 (GPWv4): Population Density, Revision 11. NASA Socioeconomic Data and Applications Center (SEDAC). Licensed under CC BY 4.0. Colours redrawn from the published colour map; values averaged into H3 cells where shown (modified). CC BY 4.0
  • VIIRS Black Marble night-time lights, NASA Goddard Space Flight Center; distributed by the NASA Level-1 and Atmosphere Archive and Distribution System (LAADS DAAC); imagery via NASA GIBS. Colours redrawn from the published colour map; values averaged into H3 cells where shown (modified). NASA open data
  • VIIRS near-real-time products (flood, land surface temperature, snow cover, corrected reflectance), NASA LANCE; imagery via NASA GIBS. Colours redrawn from the published colour map; values averaged into H3 cells where shown (modified). NASA open data
  • MODIS land products (vegetation indices, gross primary production, land cover), NASA LP DAAC and LANCE; imagery via NASA GIBS. Colours redrawn from the published colour map; values averaged into H3 cells where shown (modified). NASA open data
  • NASA Fire Information for Resource Management System (FIRMS), VIIRS 375 m active fire product, NASA LANCE; vector tiles via NASA GIBS. Colours redrawn from the published colour map; values averaged into H3 cells where shown (modified). NASA open data
  • ASTER GDEM is a product of METI and NASA (ASTER Global Digital Elevation Model V003, NASA LP DAAC); imagery via NASA GIBS. Colours redrawn from the published colour map; values averaged into H3 cells where shown (modified). NASA open data
  • Made with Natural Earth. Free vector and raster map data @ naturalearthdata.com. Public domain
  • © OpenStreetMap contributors (ODbL), via NASA GIBS (coastlines, boundaries, roads and place names). Colours redrawn from the published colour map; values averaged into H3 cells where shown (modified). ODbL
  • Blue Marble, NASA Earth Observatory; imagery via NASA GIBS. Colours redrawn from the published colour map; values averaged into H3 cells where shown (modified). NASA open data
  • Context on the globe and flat map: coastlines, boundaries, roads and place names from NASA GIBS reference layers (OpenStreetMap data, ODbL, © OpenStreetMap contributors); Blue Marble imagery as an optional base; 3D terrain and the elevation read-out from the ASTER GDEM elevation colour index (5 m to 200 m classes, exaggerated for legibility). Boundaries are drawn as published and imply no position on any territory.
  • Globe: MapLibre GL JS 6.9.1, BSD-3-Clause, © MapLibre contributors.
  • Live: GDACS (EC JRC / UN OCHA) Events are indicative, not official warnings.
  • Observed (EO): Copernicus Sentinel-2 L2A (contains modified Copernicus Sentinel data 2026), Microsoft Planetary Computer
  • Observed (EO): NASA HLS S30 (contains modified Copernicus Sentinel data 2026). We acknowledge the use of imagery provided by services from NASA's Global Imagery Browse Services (GIBS), part of NASA's Earth Science Data and Information System (ESDIS).
  • Optional layers (35 sources in the layer list: live, forecast, observed and context) print their provider credit on the map and here when switched on; forecasts are model output and derived indices are estimates.

Layers and dates

  • Population density, 2020: Population: CIESIN, Columbia University, Gridded Population of the World v4.11 (2018), NASA SEDAC, CC BY 4.0 · static
  • Night-time lights, daily: VIIRS Black Marble (VNP46A2), NASA LAADS DAAC · 12 Oct 2026
  • True colour: VIIRS NOAA-20 corrected reflectance, NASA LANCE · 13 Oct 2026
  • Land cover type (IGBP), yearly: MODIS Terra and Aqua land cover (MCD12Q1), NASA LP DAAC · 2024
  • Active fires and thermal anomalies, last day: VIIRS NOAA-20 375 m (FIRMS), NASA LANCE FIRMS · 13 Oct 2026
  • Flood water, 3-day composite: VIIRS Global Flood Product, NASA LANCE · 14 Oct 2026

03The question

Inclusive productivity: how the risk develops.

Productivity, distribution and economic opportunity. The dossier below sets out how the risk develops, what is measured, where the data come from, how it is modelled and who decides.

Mechanism

Leaders pull away

Frontier firms adopt technology and management practices quickly, while many small and informal firms lag. The gap between them can widen even as averages rise.

Mechanism

Workers move slowly between sectors

Moving labour from low- to high-productivity activities raises growth, but skills, location and information slow that reallocation.

Mechanism

Misallocation holds output down

Credit, land and regulation often favour connected firms over productive ones, so capital and labour are not used where they produce most.

Mechanism

Gains are shared unevenly

Productivity growth raises wages only where labour markets, bargaining and skills let workers capture some of it.

04Key terms

Terms used on this page.

Each term as this page uses it. Where a standard-setting body defines the term, the wording follows that body.

TermDefinition
Total factor productivityOutput growth not explained by growth in measured inputs such as labour and capital.
MisallocationUse of capital and labour in less productive firms or activities than possible.
Labour shareThe share of national income paid to workers as wages and benefits.
05Indicators

What is measured, and how well.

Each indicator carries its unit, its cadence, the kind of source behind it and the evidence label a value would carry. No values are shown: a programme supplies them under its own authority.

IndicatorUnitCadenceSource typeLabel
Labour productivityoutput per worker or per hour in constant pricesannualNational accounts and labour statisticsOFFICIAL
Total factor productivityindexannualGrowth accounting databasesESTIMATED
Productivity dispersion across firmsratio of top to bottom decilesper census or surveyFirm-level dataESTIMATED
Labour share of incomepercent of GDPannualNational accountsESTIMATED
Informal employmentpercent of employmentannualLabour force surveysOFFICIAL
Real wage growthpercent changeannualWage statisticsOFFICIAL
06Canvas

From sources to decisions.

The topic as a computational graph: named sources feed the methods, an evidence review gates the outputs, and the decisions stay with the authorities that hold them.

Pipeline canvas · Inclusive productivity as a run graphDesign, not a record
Inclusive productivity: debt sustainability analysisA macro baseline drives debt dynamics; standard and tailored shocks (growth, rates, exchange rate, disasters, contingent liabilities) give a fan of paths; thresholds and the heat map give a risk rating that informs the debt strategy. Design of the process, not a record of a run.

Fig. 02Nodes carry their type, two metric rows and a state; connectors show what feeds what; dashed frames name the owners; the timeline is the cadence. Design of the pipeline, not a record of a run.

07Sources

Where the evidence comes from.

Named public datasets and institutional records, each with its licence class. Sources by agreement are used only under their terms and never republished.

SourceWhat it givesLicence class
Penn World Table (Groningen Growth and Development Centre)Output, inputs and productivity across countriesOpen, CC BY 4.0
ILOSTATEmployment, informality, labour share and wagesOpen, CC BY 4.0
World Bank Enterprise SurveysFirm performance, constraints and practicesFree with registration, World Bank terms
OECD Productivity StatisticsProductivity by country and industryPublic, OECD terms
UNU-WIDER and GGDC Economic Transformation DatabaseSectoral employment and value addedOpen, licence to check
08Decisions

Who decides, and what the evidence serves.

Economic Development prepares evidence. The decisions below are taken by the authorities named, under their own rules, and never by the platform.

Who decidesThe questionEvidence this page serves
Ministries of finance and planningWhich constraints on productivity to address firstProductivity profiles; misallocation evidence
Ministries of labourHow to help workers share productivity gainsWage and labour share evidence
Development banksWhere support for firms and skills raises productivity mostFirm-level evidence

Outputs this topic produces

  • Productivity profiles by sector, firm size and region
  • Decompositions of growth into within-sector and structural change
  • Analyses of how gains reach wages
  • Evidence notes for growth strategies
09Core questions

What experts ask about inclusive productivity.

  • Why do productivity levels differ so much between firms, sectors and countries?
  • How much of productivity growth reaches workers as higher wages?
  • What prevents small firms and informal workers from becoming more productive?
  • How do shocks affect productivity in the long run, through lost capital and skills?
  • Which measures widen access to opportunity without reducing growth?
10Mechanisms and drivers

What drives productivity and its distribution.

Productivity rises through better technology, more and better capital, improved skills and management, and the reallocation of resources from less to more productive uses. In many developing economies, large differences in productivity exist within the same sector, with many small, informal firms alongside a few highly productive ones.

Distribution depends on how gains are shared between capital and labour, between skilled and less skilled workers, and between regions. Market power, labour institutions, access to finance and education all shape this. Productivity growth concentrated in capital-intensive sectors may create few jobs.

Shocks can have lasting effects. Firms that close lose organisational knowledge; workers who are unemployed for long periods lose skills; and cut investment slows technology adoption.

11Methods and data

Methods and their limits.

  1. 01

    Productivity accounting

    Decomposing output growth into inputs and efficiency. Results depend on how capital and quality are measured.

  2. 02

    Firm-level analysis

    Using enterprise surveys and administrative data. Informal firms are often missing.

  3. 03

    Distributional analysis

    Household surveys and tax data on income and consumption. Top incomes and informal earnings are under-recorded.

  4. 04

    Impact evaluation

    Testing programmes such as training or credit using causal inference. Results may not transfer between settings.

Productivity in services, public sectors and informal activity is particularly hard to measure, and estimates are revised often.

12Methods

How it is studied, and what the methods cannot say.

  1. Economics and development economicsGrowth diagnostics · Structural transformation analysis · Distributional incidenceApplied here
  2. EconometricsShock transmission models · Panel analysis across countries · Nowcasting with alternative dataApplied here
  3. Causal inference and impact evaluationRandomised evaluations · Evaluating place-based policies · Regression discontinuityApplied here
13Questions

Questions and answers.

What is labour productivity?
Output produced per worker or per hour worked, usually measured as real value added divided by employment or hours.
What is structural transformation?
The shift of workers and output from lower-productivity activities, such as subsistence farming, to higher-productivity ones in industry and services.
Does productivity growth raise wages?
Often, but not automatically. How much reaches workers depends on labour markets, skills, bargaining and the share of income going to capital.
Does productivity growth always raise wages?
Not automatically. How gains are shared depends on market structure, skills and institutions, which this topic examines.
Why focus on small and informal firms?
Because they employ many people in developing economies and often have the largest room for productivity improvement.
Does the platform recommend specific programmes?
No. It reviews evidence on what has worked, where and why, and leaves choices to policymakers.
Is inequality bad for growth?
The evidence is mixed and depends on the kind of inequality and the setting. The topic presents competing findings with their methods.
Economic Development

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