On 2/3/2011 10:48 AM, Alan Rudy wrote:
> I thought the general argument for increases in productivity were rooted in
> studies that show Americans working longer and harder for effectively no
> more in wages and salaries - not in much of anything to do with the
> development of new, more sophisticated skill sets.
Just to clear up a common confusion: labor productivity = output / hours worked. It has nothing to do with wages. Wages can be high; wages can be low; it doesn't affect the measurement of productivity.
In principle, productivity can increase via an greater work intensity - i.e., working harder/more per hour on the job. But if you look at a chart of labor productivity over the past 100 years (or even 30 years) it becomes obvious that it can't be chalked up to ever-increasing intensity. Eventually intensity would hit its 100% maximum and productivity growth would stop.
SA