Verdoorn's law

The Verdoorn law means a by Nicholas Kaldor made ​​popular correlation, which posits a linear relationship between the growth of labor productivity as the dependent variable and the growth of production (independent variable ).

Due to advances in productivity, economic growth must exceed a certain limit, so that new jobs will be created. This employment threshold is determined by the Verdoorn'schen law.

The employment threshold depends on:

In Kaldor's technical progress function, the growth rate of labor productivity depends on the growth rate of capital intensity.