Number: RL34073
Title: Productivity and National Standards of Living
Authors: Brian W. Cashell, Government and Finance Division 
Abstract: There is little question that rising productivity is the single most important factor behind rising living standards, but the proportion of a nation's population that is working is also important. The larger that proportion is, the more goods and services there are to go around. The share of the population that is working is only partly subject to the influence of policymakers. The size of the labor force is largely a function of demographic factors, but the share of that labor force that is employed can vary with short-term economic conditions, as well as policies that affect the cost of labor.
Pages: 11
Date: July 5, 2007