Labor Productivity and Industrial Prices

Labor productivity and price flexibility have received increasing attention among economists during recent years. The two subjects have usually been treated, however, as separate phenomena. Furthermore, most studies of price flexibility have been directed toward ascertaining short-term or cyclical fluctuations.It is the purpose of this study to analyze these two subjects as part of the same problem, to indicate the importance of their relationship to each other, and to describe their behavior in specific industries over long-term periods. In addition, an effort is made to discover the causes for the various types of behavior characterizing both labor productivity and industrial prices in the industries studied.