Supply side policy

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Question 21
Hard

Theme: Human Capital and Economic Performance

Governments frequently deploy supply-side policies to enhance the skills of the workforce and boost economic output. Table 2 below provides data on public expenditure on vocational training and annual labour productivity growth for selected countries in 2023.

Table 2: Public expenditure on vocational training and annual labour productivity growth, 2023

CountryPublic expenditure on vocational training (% of GDP)Annual labour productivity growth (%)
Finland1.52.2
Germany1.21.8
Spain0.90.7
South Korea0.82.9
Canada0.61.1
UK0.30.5
USA0.11.4

Using Table 2, evaluate to what extent differences in public expenditure on vocational training explain differences in annual labour productivity growth in selected countries.

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Supply side policy Questions

  1. A Level
  2. /Economics
  3. /Supply side policy