Productivity: A View from the Labour Market

Abstract

Labour productivity studies have largely focused on the product markets. The issues relating to organization and operations of the factor markets have largely been ignored.

This study by Ashok Aggarwal and Durga Prasad attempts to explore productivity of labour from the viewpoint of labour markets. Using two different measures of labour productivity, it has been argued that both measures should give similar results if labour markets were perfect. The closer the relationship, the lower the imperfections.