strictly speaking, labor productivity isn't (domestic output)/(domestic labor input). Rather, it's (domestic value added)/(domestic labor input), where value added = domestic output minus intermediate goods input.
BTW, it sure looks like the concept of "value added" is very similar to Marx's S+V. ------------------------ Jim Devine [EMAIL PROTECTED] & http://bellarmine.lmu.edu/~jdevine > -----Original Message----- > From: PEN-L list [mailto:[EMAIL PROTECTED] Behalf Of Diane > Monaco > Sent: Wednesday, July 14, 2004 10:57 AM > To: [EMAIL PROTECTED] > Subject: Re: [PEN-L] Productivity. > > > Doug wrote: > >Diane Monaco wrote: > > > >>Dmytri, foreign inputs don't appear to be ignored in the > formula you've > >>given above, but I would definitely agree with you that as > cheaper foreign > >>labor inputs displace domestic labor inputs, "productivity" > would rise. > > > >A productivity guy at the BLS told me that foreign labor inputs would > >be counted as foreign production as well, with little impact on the > >productivity figures. > > Would have little impact on which productivity figures, Doug? > If foreign > labor inputs are "displacing" domestic labor inputs, and > domestic labor > inputs are counted in domestic productivity figures, wouldn't > there be an > impact on domestic productivity figures? > > (domestic labor productivity)=(domestic output)/(domestic labor input) > > ...so if "domestic labor input" goes down and if domestic > output stays the > same or increases...then domestic labor productivity will go up. > > I'm thinking that the BLS productivity person you refer to > was suggesting > that foreign labor inputs don't "directly" enter domestic labor > productivity formulas as Dmytri originally suggested in the previous > post...and I would agree. Just a thought. > > Thanks, > Diane >
