Question

Define labor productivity. Discuss the relationship between labor productivity, human capital growth, and technology change. Explain thoroughly with words + graph. Explain also the graph and how its components interact.

Can you show me how to do this and explain it for me please, thank you so much

Answer 1

Labor productivity is also known as workforce productivity. Labor productivity measures the output per labor hour. That means it is the calculation of the hourly output of a country's economy. Specifically it shows the amount of real GDP by an hour of labor. And this labor productivity  driven from investment in capital, technological progress and human capital development. Labor productivity is important for four reasons:

• It increases economic growth
• Labour productivity affects everyone
• The current state of labor productivity is important
• Ageing populationand economic integration

Labor productivity = total output/ total input.

Human capital growth, technology change and labor productivity:

The first determinant of labor productivity is human capital . Human capital is the sum total of skills, knowledge, and experience that the average worker in an economy possess. So, if the rate of knowledge, experience, level of education in an economy is good then the human capital is higher and the higher labor productivity.

Technological change refers to the new inventions, advances and adaptation of the technology. So the technological change helps in increase labour productivity. Technological advances can create great benefits but also can lead to significant changes for workers. IT and automation hepls the workers to cut down their stress and strain. So it helps to increase the labor productivity.