The driving force of labor productivity

Kitov, Ivan and Kitov, Oleg (2008): The driving force of labor productivity.

Abstract

Labor productivity in developed countries is analyzed and modeled. Modeling is based on our previous finding that the rate of labor force participation is a unique function of GDP per capita. Therefore, labor productivity is fully determined by the rate of economic growth, and thus, is a secondary economic variable. Initially, we assess a model for the U.S. and then test it using data for Japan, France, the UK, Italy, and Canada. Results obtained for these countries validate those for the U.S. The evolution of labor force productivity is predictable at least at an 11-year horizon.

• Item Type: MPRA Paper
• Language: English
• Keywords: productivity, labor force, real GDP, prediction, modeling
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity; J - Labor and Demographic Economics > J2 - Demand and Supply of Labor

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