3 ms·
"Labor productivity" is a weird measure. If the worker gets better off, earning higher wages for the same effort, does his productivity go up or down? It goes
by js8 3y ago
"Labor productivity" is a weird measure. If the worker gets better off, earning higher wages for the same effort, does his productivity go up or down?
It goes down because you now have to pay him more for the same amount of work. But it also goes up because marginal utility of his work has increased.