or production processes improved to deliver a higher added value.
That does count as workers getting more productive by the standard definition of the term as usually used e.g. in discussions of Baumol’s cost disease.
I’m confused. If productivity is unit / labor, then switching to another production line which deliveres the same quantity of items but which are sold for a higher price should increase the GDP without increasing productivity. Reading a couple of papers about Bauomol’s disease seems to agree with the definition of productivity as output per labor: the labor cost increases while the productions stays the same, so price rises without an increase in efficiency.
That does count as workers getting more productive by the standard definition of the term as usually used e.g. in discussions of Baumol’s cost disease.
I’m confused.
If productivity is unit / labor, then switching to another production line which deliveres the same quantity of items but which are sold for a higher price should increase the GDP without increasing productivity.
Reading a couple of papers about Bauomol’s disease seems to agree with the definition of productivity as output per labor: the labor cost increases while the productions stays the same, so price rises without an increase in efficiency.