Questions tagged [productivity]

A measure of efficiency in production for some given set of inputs

Filter by
Sorted by
Tagged with
108
votes
16answers
19k views

How will non-rich citizens make a living if jobs keep getting replaced by robots and are outsourced?

Decades ago a factory job could support a wife and kids until retirement and they offered insurance, benefits, etc. Now, no more unions, those jobs as well as tech and customer service jobs are ...
11
votes
5answers
6k views

Productivity vs real earnings in the US — what happened ca 1974?

Somewhat related to the most recent US elections, I've been researching the whole "white working class" situation, and one strange anomaly has popped up. When one looks at a graph of productivity (...
10
votes
2answers
316 views

How does GNU software development sustain economically?

I apologise if this question is out of topic, but it is simultaneously an economy and a programming question. If it should go to another SE communality, please indicate me. In theory, GNU software is ...
9
votes
2answers
5k views

Does recycling lead to fewer jobs?

Say I buy a glass bottle, I can either put it in the landfill or recycle it. My understanding is, glass will breakdown into sand. (Not sure how well though, since we sometimes find glass from Roman ...
8
votes
4answers
2k views

Has the world become poorer?

This question is not backed by serious economic research but mainly by a very simple attempt to look at how the world economy has changed. I am asking whether and why the world has, over the past 50 ...
8
votes
4answers
244 views

Can higher working hours reduce productivity?

Are there studies about the impact on per-hour output (productivity) of increasing the number of hours worked each week by employees? If every employee works 3hrs/week longer (from 41 to 44hrs), does ...
6
votes
1answer
395 views

Why has increased productivity over the last 100 years not affected how much people work?

If we are generally richer and more productive due to better technology and other factors, why do we still work so much? I understand that there are various incentives to work (e.g. implicit status ...
6
votes
1answer
124 views

Empirical ranking of firms based on productivity

I want to rank firms based on a metric, let's call it productivity. Theoretically, this firm productivity measure may be well defined. Empirically, however, data that account for all dimensions of ...
6
votes
3answers
3k views

Why is Land not considered as a fixed capital?

As far as I know 'Fixed Capital' includes things which don't deteriorate or get used up upto a long, e.g. tools, machinery and building etc. My question is that since Land fulfills this criteria, why ...
5
votes
4answers
4k views

Labour Saving vs. Labour Augmenting - what is the difference?

It seems reasonable to say that technology generally increases output per unit of labour. Therefore in any factory which has installed new technology one can reasonably expect that for the same ...
5
votes
2answers
112 views

Can we see the computer age in the productivity statistics?

Robert Solow famously said: You can see the computer age everywhere but in the productivity statistics This quote is often linked with the productivity paradox (https://en.wikipedia.org/wiki/...
5
votes
2answers
142 views

Has Stack Overflow been economically beneficial to programmer productivity?

Has Stack Overflow an overall positive impact on programmers productivity? On one side, it takes time and effort to ask and answer questions -- thus decreasing productivity. On the other side, ...
4
votes
2answers
234 views

Empirical explanation on divergence between productivity and wages since the 70s

There is a well know graph, that shows a tight link between productivity and wages, until the 70s, and a break of the link since: There's a lot of possible explanations for this, I keep hearing more ...
4
votes
2answers
275 views

Workforce productivity

If I would like to say, in a technical way, that the problem of a place is its lazy people, then I could say that its workforce productivity is low. However, "workforce productivity" is composed by ...
4
votes
1answer
210 views

Difference between Value-Added TFP and Gross-Output TFP?

I am working with EU-KLEMS data, and I am using TFP growth as a proxy for technological change. However, there are 2 variables for TFP - TFP based on Gross Output and TFP based on Value Added. I ...
4
votes
1answer
237 views

Can capital still be paid its marginal product in the absence of a homogeneous capital stock?

Thomas Piketty's best-selling book on inequality, "Capital in the Twenty-First Century" has attracted a lot of criticism on the right for its data analysis. Less well-known, however, is the criticism ...
4
votes
0answers
19 views

CES aggregator for intermediates with heterogeneous productivity

I'm following Atkeson, Burstein (2019 JPE), and cannot understand the aggregation result. There is measure $M(z)$ of firms with productivity $z$, with production function $$ y(z) = z k(z)^\alpha l(z)^...
3
votes
1answer
46 views

When does a high markup mean high productivity? Never?

I was reading this article in VoxEU, where the authors (one is a Professor of Economics at Harvard University) make the case that an increasing average mark-up has accounted for much of the late ...
3
votes
3answers
5k views

What are the causes of increase in productivity of labour?

This question has a specific context. While reading Adam Smith's The Wealth of Nations, edited, with notes and marginal summary by Edwin Cannan in 1904, one comes across the following lines on the ...
3
votes
3answers
228 views

Growth Accounting

In growth accounting the production function is defined as follows: $$Y= AF(K,L) $$ That means output $Y$ is dependent upon capital $K$, labour $L$ and technology $A$. Now to produce something, in ...
3
votes
1answer
67 views

How to improve the underperforming construction productivity by correcting its market failures?

Globally, labor-productivity growth in construction has averaged only 1 percent a year over the past two decades, compared with growth of 2.8 percent for the total world economy and 3.6 percent in the ...
2
votes
2answers
66 views

Why low labour productivity for Govt Services in UK and USA in 2000s?

My labour productivity data for USA and UK show that the "Government services" sector for both countries are below their economies' average. This trend is observed in the 2000s. Are there any ...
2
votes
2answers
590 views

Why does entitlements leads to lower US productivity? [closed]

In a recent Bloomberg interview, Alan Greenspan suggested that entitlements leads to lower productivity, can you please explain it? What does 'capital stocks' mean? Does he means that because we ...
2
votes
1answer
66 views

Does credit really help an economy?

I'm reading Ray Dalio's How the Economic Machine Works, and although I understand the role of credit in an economy, I don't understand whether credit actually adds any value to an economy. Ray says ...
2
votes
2answers
254 views

Inclusion of firms on the efficient frontier of a Production Possibility Set

I'm working through Cooper's Data Envelopment Analysis, and they are going over Production Possibility Sets. They present 9 firms, each with two inputs and one output: Graphically it easy to see why ...
2
votes
3answers
70 views

GDP per Installed Computing Facilities

I would like to quantify the importance of computing power for economic aggregate output in an economy in a "simple" GDP-to-installed-CPU ratio. The idea is to calculate a measure similar to GDP-to-...
2
votes
2answers
132 views

Why are imported Chinese products in India cheaper than those locally produced?

Why an imported Chinese product in India is cheaper compared to a locally manufactured item?
2
votes
3answers
152 views

If automation implicitly increases wealth, why is it generally considered undesirable?

When it comes to the subject of automation, I read that the wide majority of the arguments assume that the profits/savings "vanish", alongside the jobs loss. I see the reasoning above as flawed ...
2
votes
1answer
36 views

Quarterly industry-level productivity growth?

Are there any quarterly data on industry-level productivity growth (i.e., by NAICS code) in the United States? I've looked around for a while but haven't been able to find anything. BLS publishes ...
2
votes
0answers
46 views

How can the number of hairdressers in the UK be up 50% since 2010?

In this recent article, The Economist argues that one of the reasons behind the anaemic recent wage growth in Britain is that the recent job growth has been concentrated in lower-productivity jobs and ...
2
votes
0answers
18 views

References for estimating lifetime earnings lost due to caregiving (health economics)

I am working on a project on the productivity costs for caregivers of people with Disease X, a degenerative disease that affects mobility over time. I am looking for references, either scholarly ...
2
votes
0answers
125 views

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 ...
1
vote
1answer
94 views

Has worker productivity decreased since the election of Donald Trump?

Anecdotally, I know that myself and others have felt distracted, depressed and anxious since the election of Donald Trump. Are there any studies that have objectively sought to measure worker ...
1
vote
2answers
42 views

Why labor-augmenting technological progress increases employment and wages?

My textbook says that advances in technology typically raise the marginal product of labor and shift the labor demand curve to the right and calls it labor-augmenting technological advances. The book ...
1
vote
1answer
1k views

If the Number of Workers in an Economy Doubled, Would Productivity Fall to Half its Former Value?

I am assuming that the production function for the economy has constant returns to scale, and all other inputs stay the same. These are the steps I have made to try to answer this question: 1) Y/L = ...
1
vote
3answers
163 views

Do machines reduce labor… or so they redistribute, alter, and globally increase labor?

John Stuart Mill famously remarked that labor-saving machines have not saved one minute of labor. More seriously, Marx argued, roughly, that machines can gain temporary market advantage, but cannot ...
1
vote
1answer
26 views

How would increase labor productivity lead to improved living standards of people in an economy?

I would like to know more about the mechanisms through which higher labor productivity would translate into higher living standards for a population in a given economy.
1
vote
1answer
37 views

Why is increased productivity infinitely good

From investopedia: Supply rises with productivity, dropping real prices and increasing real wages; it lifts people out of poverty and allows them to focus on efforts beyond mere survival. I ...
1
vote
2answers
100 views

Productivity and wages in a task-based model

In a task-based model like the one developed in Acemoglu&Autor 2011 with two types of worker, can the low type have a higher wage with respect to the high type? More specifically: if the ...
1
vote
2answers
98 views

Why are readily available productivity data relative, not absolute?

I've been trying to do some cursory research on labor productivity. In the process, I've noticed that the readily available data in the US, as accessed through either BLS or FRED (yes, I know it's the ...
1
vote
2answers
3k views

Will SRAS curve definitely shift if LRAS curve shifts?

From what I know, a shift in LRAS is generally caused by a change in maximum productive capacity of an economy, which affects the full-employment output level. Such change in maximum productive ...
1
vote
1answer
915 views

What is establishment-level data

National level or aggregate level data and firm-level data are self explanatory. I have seen certain papers on productivity analysis as well as other topics which refer to "establishment-level" data. ...
1
vote
1answer
38 views

Measuring productivity with the Törnqvist index

I have a sample of companies, of which I want to calculate the productivity of each individual firm relative to a hypothetical firm in the industry. Choosing the measurement method was not easy, but ...
1
vote
1answer
54 views

Total factor productivity and revenue

On page 116 of The British Industrial Revolution in Global Perspective Robert Allen writes "...the total factor productivity of enclosed farms was 18 per cent higher than that of open fields. If ...
1
vote
1answer
95 views

Tax system is progressive or regressive

Let´s discuss a little! When the direct effect of a tax or transfer policy (compared to what would happen in the absence of the policy) is a reduction in inequality, it is called progressive policy. ...
1
vote
2answers
31 views

2 firms production decision for one agent

I'm trying to solve the optimal production $\{x,y\}$ for a risk neutral agent with weight $w$ in firm $X$ and weight $1-w$ in firm $Y$. Each firm has marginal cost $c^X$ and $c^Y$ respectively. The ...
1
vote
1answer
92 views

Government Ownership vs Private Ownership

In a debate concerning long term economic strategy, a representative of a left party was trying to support that privatisation and Small Government which minimizes its own activities is not a viable ...
1
vote
1answer
24 views

What are the different patterns/quantity of employment according to demands of different income ranges?

I don't really have that much knowledge on economics or anything, so perhaps that's something I'd find an answer if I just knew the adequate terminology. Rephrasing/explaining my question: different ...
1
vote
1answer
147 views

Labour Productivity Growth and Reallocation of Labour

Using a shift-share methodology, labour productivity growth can be arise from productvity growth within a sector (within effect) or reallocation of labour to sectors with higher productivity (...
1
vote
0answers
32 views

Data on labour productivity in India

I am trying to find historical data at the district, or ideally at the city-level on labour productivity (by sector, with a special focus on agriculture) or perhaps data on a similar measure?