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The driving force of labor productivity

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Author Info
Kitov, Ivan
Kitov, Oleg

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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://mpra.ub.uni-muenchen.de/9069/
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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 9069.

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Date of creation: 10 Jun 2008
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Handle: RePEc:pra:mprapa:9069

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Related research
Keywords: productivity labor force real GDP prediction modeling

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Find related papers by JEL classification:
O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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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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This page was last updated on 2008-11-18.

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