Why a high level of labor force growth is correlated, Microeconomics

Assignment Help:

Why a high level of labor force growth is correlated

A high level of labor force growth is correlated--even though less powerfully--with a low level of output per worker. The average nation with a labor force growth rate of more than 3 percent per year has an output per worker level less than 20 percent of the U.S. Average variable with a lab or force growth rate of less than 1% has an output per worker level greater than 60 percent of the U.S. level.

Together these determinants of steady-state capital-output ratio can statistically account for up to half of variation in national economies' levels of productivity per worker in the world today.

Differences in the efficiency of labor are as significant as differences in steady-state capital-output ratios. Differences in efficiency of labor arise from differential ability of workers to handle and utilities modern technologies.

Efficiency of labor is high in those places where educational levels are high-sothat workers can use modern technologies they are exposed to-and where economic contact with industrial core is high-sothat managers and workers are exposed to the modern technologies invented in world's R&D laboratories.

Schooling is the variable which has the strongest correlation with output per worker. Nations that have an average of 4-6 years of schooling have output per worker levels that average 20% of the United States' Countries with an average level of schooling of greater than 10 years have output per worker levels of 65% of the U.S. level.

 


Related Discussions:- Why a high level of labor force growth is correlated

Externalities, what is externalities and market inefficiency

what is externalities and market inefficiency

Effects of weight loss, Effects of weight loss A healthy body is required n...

Effects of weight loss A healthy body is required not only for the sake of health, but also for maintaining the standard frame of a body. A person experiencing the problem of weigh

Price elasticities of demand, how to compute the price of a laptop increase...

how to compute the price of a laptop increase of 20% and there is a 40% drop in the aquantity demanded

Show the method of applying a discount, Q. Show the method of applying a di...

Q. Show the method of applying a discount? The method of applying a discount rate to convert future monetary amounts to their equivalent value in today's terms, based on the pr

Explain about employment rate, Q. Explain about Employment Rate? Emplo...

Q. Explain about Employment Rate? Employment Rate: This measures share of working age adults who are in fact employed in a paying position. Employment rate can be a better in

Revenue, draw the supernormal curve

draw the supernormal curve

Durability of the commodity, Durability of the Commodity: With some comm...

Durability of the Commodity: With some commodities, we require one at a time and they are used for a very long time before they get spoilt. Examples of such goods are cars, tele

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd