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The driving force of labor productivity

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  • Kitov, Ivan
  • Kitov, Oleg

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.

Suggested Citation

  • Kitov, Ivan & Kitov, Oleg, 2008. "The driving force of labor productivity," MPRA Paper 9069, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:9069
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    References listed on IDEAS

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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.
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    Cited by:

    1. Kitov, Ivan & Kitov, Oleg, 2009. "Modelling and predicting labor force productivity," MPRA Paper 15152, University Library of Munich, Germany.
    2. Ivan Kitov & Oleg Kitov, 2009. "Unemployment and inflation in Western Europe: solution by the boundary element method," Papers 0903.5064, arXiv.org.

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    More about this item

    Keywords

    productivity; labor force; real GDP; prediction; modeling;
    All these keywords.

    JEL classification:

    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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