The increase of capital per worker in the United States has shifted labor's productivity wages up faster than technological change alone would have.

Question

Quizplus · Accepted Answer

This statement is true. The increase in capital per worker, also known as capital deepening, can contribute to increasing labor productivity and wages. This is because workers have access to better tools and equipment that can make their work more efficient and effective. Technological change can also contribute to higher productivity and wages, but the increase in capital per worker has been shown to have a bigger impact.

The Increase of Capital Per Worker in the United States