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> GDP per capita is a yardstick for labor productivity. Or how much oil will gush out of the ground if you drill a hole in the right place.
by Aperocky 4y ago
> GDP per capita is a yardstick for labor productivity.
Or how much oil will gush out of the ground if you drill a hole in the right place.
- hammock 4y ago>drill a hole >labor I believe you are saying the same thing
- myownpetard 4y agoOnly if the value of a hole of equivalent dimensions is constant and independent of location. There's a whole Disney movie that demonstrates not all holes are created equal.
- PeterisP 4y agoWell no, the whole point of measuring country differences in labor productivity is that in some countries spending x hours to drill a hole in the ground is vastly more productive than in others.
- myownpetard 4y agoThe point here is that, if we want to use GDP as a proxy for labor productivity, then including wealth from extractive industries isn’t that useful because it tells us much more about the geology of the country then about the labor force.