Flaschel, Peter; Franke, Reiner; Veneziani, Roberto - 2010
This paper analyzes labor productivity and the law of decreasing labor content (LDLC) originally formulated by Farjoun … and Machover (1983). First, it is shown that the standard measures of labor productivity may be rather misleading, owing … theoretically and empirically sound measures of labor productivity. The notion of labor content and the LDLC are therefore central …