how is “productivity” measured?

360 views

I was listening to some political pundit banging on about increasing productivity across different industries.

And something like a factory, I can see it: the more widgets you make, the more productive you are. Or how many sales you make in a call centre or on the retail floor. But how are you measuring the productivity of, say, a therapist, or a bus driver, or a teacher?

In: 7

8 Answers

Anonymous 0 Comments

Usually when economists are discussing productivity, they’re referring to the measure GDP divided by labor hours. So, for a therapist it’s client billings per hour of therapist’s time, for a bus driver it’s passenger revenues, for a teacher it’s pro rata tuition or the share of property taxes spent on education assigned to them.

You are viewing 1 out of 8 answers, click here to view all answers.