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Public Sector Productivity – managing the Baumol cost disease

The Productivity Agenda: Chapter 8

The public sector plays a critical role in the economy, providing essential services as well as creating an enabling environment for private sector growth. These functions have direct and indirect impacts on the economy and society, using taxpayers’ money.

In order to unleash productivity, the public sector needs to invest in its drivers at all steps in the delivery chain and broaden the scope of public sector productivity to include organisational productivity and effectiveness.

The paper also includes a number of policy implications.

Author: Bart van Ark (The University of Manchester), Joel Hoskins (The University of Manchester), Nina Jörden (University of Cambridge)


  • Productivity Studies




B. van Ark, J. Hoskins, N. Jörden (2023) Public Sector Productivity – managing the Baumol cost disease. Productivity Insights Paper No. 025, The Productivity Institute.