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Average productivity in the economy is just ratio of hours worked to GDP. It doesn’t mean that all, or even most of the workers work harder or smarter. In count
by xyzzyz 9y ago
Average productivity in the economy is just ratio of hours worked to GDP. It doesn’t mean that all, or even most of the workers work harder or smarter. In countries like Germany, the high productivity industries pull the rest of the economy behind them. The German janitor is not likely to be any more productive that janitor in poorer countries, his wage is just higher than there, because the economy provides better job market, and so the companies must pay higher wages to find employees.
In countries like Greece or Poland, average worker does much more hours in a year, but it’s not because he is working less smart. It’s just the high productivity industries are simply not there, so he must work harder to earn the same money.