According to common sense, the more time you spend at work, the higher earnings you hope to get. Cross country comparison shows opposite result. The higher is the number of hours worked by employees, the smaller are their wages. For example, Greece, with its 5.5 hours, is among top 10 countries having the longest work day. Nevertheless, per capita income in Greece much lower compared to Netherlands, Germany, Norway, France or Luxemburg, where one employee works no more than 4 hours per day. The key point here is a level of labor productivity, which in Netherlands almost 2 times higher compared to Greece.
*Number of hours worked per day is culculated as number of hours worked per person per year / 365 days.
(17 September 2021) Data from international organizations such as the U.N. and the International Monetary Fund shows that in the last five decades global economic growth decelerated by almost 50%—from an average 3.9% growth per year in the 1970s to an average 2.3% growth in the 2010s. Current trends in labor, capital, and productivity—the major drivers of economic growth—suggest deceleration will continue long term. Data from the U.N. shows that the global annual growth of population ages 15–64 (which constitutes the labor force) decelerated from 2.2% in 1970 to less than 1% in...
According to endogenous growth theories, innovations is one of the key drivers of economic growth. To boost innovations and technical progress, countries spend a lot of money on Research and Development. In most developed countries expenditures on research and development exceed 2% of GDP. And about 70-75% of R&D expenditures are covered by private business corporations.
While the time lags between particular inventions and their eventual broad diffusion can be long and change over time, technology has been key to productivity growth since the first industrial revolution, which in turn, has underpinned strong per-capita GDP growth. A series of significant innovations such as the steam engine, railway, electricity, and the combustion engine, as well as improvements in production methods, infrastructure, health outcomes, and educational attainment supported productivity growth throughout the 19th and 20th century, resulting in vast gains in living...
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