Labor Productivity

Notes on travail productivity fag productivity is a trace element in the explanation of how the economy works. It is especially alpha with regard to wages. What follows is some material about chore productivity and investment spending that is a reorganization of what is presented in your textbook. Its instruction is on the connection between labor productivity and wages. Labor productivity is the value of the product or service you rotter produce in an hour, day, week or other unit of measurement of time. The value you slew produce depends on the amount of work-product you rotter produce and the price at which that product crumb be sold. When the product is sold, the owner lay asides crash of that value as profit, and part of it goes to pay for other production expenses. The worker then returns the relief as the wage. (The Marxists like to talk about this as growth and expropriation of the surplus.) If you want a sustained increase in your hearty wage, you energise to have an increase in labor productivity. However, you may not get a raise just because your labor productivity rises. Labor productivity may rise, thereby airlift the value of your days work, but the owner can keep the increase as higher profit.

This raises two questions: How can you get to keep a part of increase labor productivity in a higher wage, and what contributes to systematic increases in labor productivity? First, your boss testament want to keep you as a worker, assuming you are a nigh one. When the business cycle is at a point where real GDP is near full employment and expanding, other firms will want to hire workers away from the company you work for. You get a raise to keep you where you are. The other way is to have a union that negotiates with the owner for a share of increased labor productivity. To answer the second question, consider the following. Systematic increases in labor productivity come from investment spending. Investment spending, in the broadest sense, refers to spending that creates more... If you want to get a full essay, clubhouse it on our website: Orderessay

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