# How does Austrian Economics define Labour Productivity?

Is there a specific Austrian definition in accordance to the concept of Labour Productivity?

If Labour Productivity is too broad of a term, then I will qualify to be speaking about it in context of this video which speaks about Labour Productivity comparing Canada to the United States.

If Canada's Labour Productivity matched that of the United States between the years 1988 and 2008, how would our [Canadians] lives be different?

Real GDP - $8,500 higher Personal Disposable Income -$7,500 higher

Corporate Profits - 40% higher

Federal Government Revenues - 31% higher

• Why would you expect Austrians to have a different definition of productivity? Productivity is how much work you get done within a certain time span. I do not expect you will find Austrians having a problem with this definition... – nondeterministic Apr 8 '20 at 17:47
• @nondeterministic The only reason I would have suspected otherwise, is because they have a subjective theory of value which is considered heterodox to most other economic schools of thought. – Akiva Apr 8 '20 at 23:30
• Interesting. I thought Austrian value/cost theory (e.g., as put forth by Rothbard) reflected these days more or less the commonly accepted view on the subject, even in mainstream economics. And I assumed old Marxian cost theory is considered dead today. – nondeterministic Apr 10 '20 at 8:01
• @nondeterministic No, and its not a Marxian theory. Labour theory of value comes from Smith/Ricardo; The Marxians just interpret it as theft of excess labour, without deviating too much with the core theory that value is extracted from labour. From what I know, value is determined in most mainstream economics by units of "util" concepts, measuring utility. This hammer has 25 utils in it, while this screwdriver has 50. I could be wrong though. – Akiva Apr 10 '20 at 22:21
• Smith, Ricardo, and Marx did have some labor theories of value. However, since at least the 1870s, these have been rejected as mistaken, in favor of the subjective theories of values (to which the Austrian school was an important contributor). Today, mainstream economics subscribes to the subjective theory of value and reject the old labor theories of value (but self-described Austrians tend to more heavily emphasize this point, which is why you might have the impression that this is an "Austrian thing"). – Kenny LJ Jul 27 '20 at 0:28