show that ULC is wage divided by labor productivity. Thus, changes in ULC are often discussed in the context of wage … increases and labor productivity. However, a higher wage induces firms to substitute labor with capital, which affects labor … productivity. However, the conventional decomposition of changes in ULC dismisses this indirect impact of wage on ULC through labor …

We (a) propose an implementable innovation index, (b) relate it to existing innovation definitions and (c) show whole … from the EUKLEMS database. Our main findings are as follows. Over 2000-2005, market sector labour productivity grew at 2 … innovation contributed 61% (=(1.24+0.45)/2.74)of labour productivity growth over the period. -- Innovation ; productivity growth …

productivity rather than wage compensation suggests that persisting idiosyncratic dynamics are driven by real factors, i …