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Labor Productivity
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Output per worker; the amount of output produced by an average worker in one hour.
Measured labor productivity Will vary as a function of both other input factors and the efficiency with which the factors of production are used (total factor productivity). So two firms or countries may have equal total factor productivity (productive technologies) but because one has more capital to use, labor productivity Will be higher.
Output per worker corresponds to the "average product of labor" and can be contrasted with the marginal product of labor, which refers to the increase in output that results from a corresponding (marginal) increase in labor input.
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Financial Research Associates, LLC
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