Macroeconomics › Section G · Economic growth › Topic G.2
Labor productivity and growth
A country cannot keep raising living standards by working ever longer hours. Over the long run, incomes rise because each hour of work produces more, and small gains in that rate compound into very large differences.
In this topic
- Output per hour is the engine
- Measuring labour productivity
- What makes workers more productive
- The aggregate production function
- Productivity and GDP per person
- Worked example: splitting growth per person
- The US productivity record
- Productivity and wages
- Compounding and the rule of 70
- Worked example: the gap two points make
- Common mistakes to avoid
- Key takeaways
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