Comment by graemep
2 days ago
It is from a certain point of view. For example at a national level productivity is measured in GDP per hour worked. Even this is problematic - it means you increase productivity by reducing working hours or making low paid workers unemployed.
ON the other hand it makes no sense from some points of view. For example, if you get a pay rise that does not mean you are more productive.
Yeah it only works at a very high level, but from there it's a pretty good measure. Like it's basically "what are the values of the inputs vs. the outputs", which is dead simple. At any lower level there are lots of confounding variables you have to contend with.