This paper analyzes cross-national similarities and differences in order to determine how labor markets react to and affect technical change and productivity growth. Long-term employment, high investment in training, compensation for firm-specific skills, and larger firm size are factors that lead to greater productivity in technologically advanced economies. The author concludes that proper rewards to both workers and employers will create an environment that enhances productivity derived from technological advance.
This report is part of the RAND Corporation paper series. The paper was a product of the RAND Corporation from 1948 to 2003 that captured speeches, memorials, and derivative research, usually prepared on authors' own time and meant to be the scholarly or scientific contribution of individual authors to their professional fields. Papers were less formal than reports and did not require rigorous peer review.
The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.