Economic Growth and Labor Productivity

Vocabulary flashcards related to economic growth and labor productivity.

Labor Productivity

Amount of goods and services produced by one unit of labor.

Formula for GDP per capita

(GDP/Employment) * (Employment / Population)

Growth rate in GDP per capita Approximation

Sum of the growth rates in employment per capita and labor productivity.

Capitalization

Increase in the physical and human capital per worker.

Total Factor Productivity (TFP)

Improvement in the joint efficiency of labor and capital applied to the productive process, mainly determined by technological advance.

Capital Deepening

Contribution of physical and human capital per worker to labor productivity growth.

R+D Expenditure

Investment by public and private entities, towards research and development

Structural Changes

Significant transformations in an economy, such as changes in the productive structure, the role of the public sector, income distribution, openness to the world, and immigrant population.