But do remember thinning workers does have a productivity effect in part due to
outsourcing. If it takes 4 manhours (not to be sexist, there are v. few female
steelworkers at the shoprfloor) to produce a ton of steel, given certain other
backward links in the plant itself, and now some of those are outsourced, the
company reports that labor productivity has increased because now it takes only
3 manhours. There is a measurement issue and one needs exercise caution as to
what is produced and by whom. For the entire econonomy this is a tough call.
Anthony
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Anthony P. D'Costa, Professor Currently
Comparative International Development Senior Visiting Research Fellow
University of Washington Asia Research Institute
1900 Commerce Street National University of Singapore
Tacoma, WA 98402, USA 469 A Tower Block
Phone: (253) 692-4462 Bukit Timah Road #10-01
Fax : (253) 692-5718 Singapore 259770
http://tinyurl.com/yhjzrm Ph: (65) 6516 8785
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On Mon, 24 Sep 2007, Jim Devine wrote:
Date: Mon, 24 Sep 2007 20:42:39 -0700
From: Jim Devine <[EMAIL PROTECTED]>
Reply-To: PEN-L list <[email protected]>
To: [email protected]
Subject: Re: [PEN-L] Queery about Greenspan and productivity
Michael Perelman wrote:
A recession/depression also increases
productivity.
Doug Henwood wrote:
Not necessarily. The accepted wisdom is that productivity is
procyclical. It was widely seen as unusual that U.S. productivity
stayed strong through the 2001 recession and the weak 2002-3 recovery.
labor productivity (deliberately avoiding the bogus concept of "total
factor productivity") is usually pro-cyclical because as demand and
production increase, overhead labor is used more completely. However,
a severe recession can lead to the sacking of most overhead labor,
which can raise labor productivity. Also, these days -- after the
thinning out of white collar jobs during the 1990s and the move to
"leaner" production hierarchies -- the pro-cyclical effect is
weakened.
--
Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own
way and let people talk.) -- Karl, paraphrasing Dante.
