Determinants of Marxian labor productivity in the Greek economy 1960–2020

Abstract

This paper discusses productivity growth in the context of the Greek economy. Productivity of labor in the Marxian sense is estimated using the distinction between productive and unproductive labor, and it is compared and contrasted with its mainstream counterpart. Marxian productivity is generally higher in level and exhibits a higher average rate of growth than mainstream productivity. We also estimate econometrically the determinants of productivity growth. Variables stressed in the classical-Marxian approach expressing capital accumulation appear to account for most of the variation in productivity growth. This is in contrast to certain radical approaches and especially the Social Structures of Accumulation school which stress the importance of ‘social’ variables for the explanation of productivity growth. In particular, the negative correlation found here between productivity growth and unemployment rate for Greece contradicts earlier findings in the Social Structures of Accumulation literature which postulate a positive correlation between those variables for countries like Greece and the United States. JEL classification: E11, E24, J21