productivity
Workers in More Developed Countries are more productive than workers in Less Developed Countries. Productivity is the value of a particular product compared to the amont of labor needed to make it.
In More Developed Countries workers are more productive because:
More access to machines
More access to tools
More access to technology
More wealth is generated in the country = more money for people
Higher GDP per capita = more access to new innovations
In Less Developed Countries workers are less productive because:
Work by hand
Dependence on animal power
Less GDP per capita = less access to technology
Productivity can be measured by the VALUE ADDED per worker. Value Added in manufacturing is the gross value of teh prooduct minus the costs of raw materials and energy. The value added per worker is 30 X greater in more developed countries than in less developed countries. For example, the average worker adds a value of $40,000 in the US compared to the $2,500 in less developed countries.