Is income per worker the same as output per woker in a steady state?

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2026-05-09 15:00

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In a steady state, income per worker is typically equal to output per worker, as both measures reflect the productivity of labor in an economy. However, this equivalence holds true under specific conditions, such as when all output is paid out as income and there are no significant distortions or inefficiencies in the economy. If factors like taxes, savings, or investment behaviors come into play, the two measures may diverge. Overall, while they are closely related, they are not inherently the same.

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