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The driving force of labor productivity

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Author Info
Ivan O. Kitov
Oleg I. kitov

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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

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File URL: http://arxiv.org/abs/0811.2124
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File URL: http://arxiv.org/pdf/0811.2124
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Paper provided by arXiv.org in its series Quantitative Finance Papers with number 0811.2124.

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Date of creation: Nov 2008
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Handle: RePEc:arx:papers:0811.2124

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  1. Campbell, John Y., 1994. "Inspecting the mechanism: An analytical approach to the stochastic growth model," Journal of Monetary Economics, Elsevier, vol. 33(3), pages 463-506, June. [Downloadable!] (restricted)
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  1. Kitov, Ivan & Kitov, Oleg, 2009. "Modelling and predicting labor force productivity," MPRA Paper 15152, University Library of Munich, Germany. [Downloadable!]
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