In short, productivity rises if the GDP (gross domestic product) increases faster than employment. Productivity increase Many factors help buoy up productivity increase. They include capital accumulation via investments, dissemination of new technologies, domestic innovative efforts, enhanced division of work, higher levels of education, organizational and technological production modes from world-class models, and the development of physical and social infrastructures, Impacts of productivity increase Higher productivity will first make its presence on profits and ultimately on people s wages. Experts say that once people realize that life is never-ending journey to learning, they will be able to find ways to their successes. To increase productivity, it is best never to stop learning because this opens up to new worlds of possibilities that are waiting to be explored. If one continues learning through read or by trying different things, he or she can gain more confidence to do things and start with new projects. This is because if you already accepted that there are things that are beyond your control, you will be able to forgive yourself and start anew. If you just keep thinking of the past, this will serve as a reminder of your failure. And if you keep thinking about your defeat, you will undergo a never ending cycle of blaming yourself for the things that you did not really opted to do. Objectives Experts Sardina and Vrat declared that those who will undertake productivity measurements should have three objectives. One, potential improvements must be identified. Two, a decision must be made to reallocate resources. And three, it should present how well the previously established goals were determined. He found that efficiency accounted for only a little more that a quarter of growth in output, while growth in capital and labor inputs accounted for the remainder. This was precisely the opposite of the conclusion that Kuznets (1971) and Solow (1970) reached 30 years later. Total factor productivity The total factor productivity (or efficiency) was introduced independently by Stigler and became the starting point for a major research program at the National Bureau of Economic Research. Productivity Growth Factors The primary components that help determine labor productivity had already been identified. Capital deepening, labor quality, and total factor productivity are the elements that had been used in many of past applied productivity work. In capital deepening, workers are found to be more productive when they have more or better physical capital with which to work.
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