Modelling and predicting labor force productivity

TL;DR

This paper models labor productivity across multiple countries by linking labor participation rates to real GDP per capita, validating the relationship and predicting future productivity declines in most studied nations.

Contribution

It extends previous models to include additional countries and provides validated predictions of future productivity drops based on labor participation and GDP data.

Findings

Confirmed the link between labor participation and productivity.

Predicted a decline in productivity by 2010 in most countries.

Extended analysis to new countries beyond previous studies.

Abstract

Labor productivity in Turkey, Spain, Belgium, Austria, Switzerland, and New Zealand has been analyzed and modeled. These counties extend the previously analyzed set of the US, UK, Japan, France, Italy, and Canada. Modelling is based on the link between the rate of labor participation and real GDP per capita. New results validate the link and allow predicting a drop in productivity by 2010 in almost all studied countries.