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The Covid-19 Pandemic and the Productivity Paradox

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  • Robert N. Mefford

    (School of Management, University of San Francisco)

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.

Suggested Citation

  • Robert N. Mefford, 2023. "The Covid-19 Pandemic and the Productivity Paradox," Journal of Behavioral Economics for Policy, Society for the Advancement of Behavioral Economics (SABE), vol. 7(1), pages 11-18, November.
    • Handle: RePEc:beh:jbepv1:v:7:y:2023:i:1:p:11-18
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    References listed on IDEAS

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    1. Erik Brynjolfsson & Daniel Rock & Chad Syverson, 2021. "The Productivity J-Curve: How Intangibles Complement General Purpose Technologies," American Economic Journal: Macroeconomics, American Economic Association, vol. 13(1), pages 333-372, January.
    2. Chad Syverson, 2017. "Challenges to Mismeasurement Explanations for the US Productivity Slowdown," Journal of Economic Perspectives, American Economic Association, vol. 31(2), pages 165-186, Spring.
    3. Cevat Giray Aksoy & Jose Maria Barrero & Nicholas Bloom & Steven J. Davis & Mathias Dolls & Pablo Zarate, 2022. "Working from Home Around the World," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 53(2 (Fall)), pages 281-360.
    4. Lettau, Martin & Ludvigson, Sydney & Greenwald, Dan, 2019. "How the Wealth Was Won: Factor Shares as Market Fundamentals," CEPR Discussion Papers 14200, C.E.P.R. Discussion Papers.
    5. Abel Brodeur & David Gray & Anik Islam & Suraiya Bhuiyan, 2021. "A literature review of the economics of COVID‐19," Journal of Economic Surveys, Wiley Blackwell, vol. 35(4), pages 1007-1044, September.
    6. Julius Probst, 2019. "Lawrence Summers Deserves a Nobel Prize for Reviving the Theory of Secular Stagnation," Econ Journal Watch, Econ Journal Watch, vol. 16(2), pages 342–373-3, September.
    7. Michael Gibbs & Friederike Mengel & Christoph Siemroth, 2023. "Work from Home and Productivity: Evidence from Personnel and Analytics Data on Information Technology Professionals," Journal of Political Economy Microeconomics, University of Chicago Press, vol. 1(1), pages 7-41.
    8. Giuseppe Attanasi & Aldo Montesano, 2012. "The price for information about probabilities and its relation with risk and ambiguity," Theory and Decision, Springer, vol. 73(1), pages 125-160, July.
    9. Erik Brynjolfsson & Felix Eggers & Avinash Gannamaneni, 2018. "Measuring Welfare with Massive Online Choice Experiments: A Brief Introduction," AEA Papers and Proceedings, American Economic Association, vol. 108, pages 473-476, May.
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    Cited by:

    1. Alessandro Cascavilla & Rocco Caferra & Andrea Morone, 2023. "The green and the dark side of distance learning: from environmental quality to socioeconomic inequality," Journal of Behavioral Economics for Policy, Society for the Advancement of Behavioral Economics (SABE), vol. 7(2), pages 33-38, December.

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    More about this item

    Keywords

    productivity paradox; X-efficiency; pandemic; technology change; information and communication technology;
    All these keywords.

    JEL classification:

    • D2 - Microeconomics - - Production and Organizations
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • D9 - Microeconomics - - Micro-Based Behavioral Economics
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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