The Relationship Between Labor Productivity and GDP Per Capita: A Comparative Analysis of OECD Countries

This study aims to provide fresh evidence on the economic performance of 10 Organisation for Economic Co-operation and Development (OECD) member countries (Colombia, Greece, Korea, Portugal, Turkiye, Denmark, Finland, United States, Netherlands, and Switzerland) by examining the relationships between labor productivity and per capita gross domestic product variables. The current status of the variables related to the model created for different countries is compared to past period data through graphs, regression analysis, and correlation matrix. As a result of the applied analysis, the gross domestic product per capita of the first five countries with low labor productivity is also lower than the other five countries. In addition, a significant, positive, and robust relationship exists between output per hour and gross domestic product per capita. It is concluded that reducing working hours and producing the same or more, that is, increasing labor productivity, will increase both the hourly earnings of the employee and the daily production amount.