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Difference between hourly wage and real GDP per hour worked?

  1. May 12, 2012 #1
    In 2008 the real GDP per hour worked was $45.70? I don't think this means that the average person was making $45.70...

    Here is that graph that contains this data:
    http://dl.dropbox.com/u/64325990/ECON%20102/Capture.PNG [Broken]

    Could someone please explain the difference?
     
    Last edited by a moderator: May 6, 2017
  2. jcsd
  3. May 12, 2012 #2
    I did some similar work on this not too long ago using US nominal GDP.

    In 1950 the labor force included 62,000,000 workers; produced a GDP of $293.7 billion; federal minimum wage was $0.75 per hour, however, the average hourly rate was $2.27 per hour.

    Much of my analysis was done on minimum wage versus the average wage.

    New workers will not earn near what experienced workers earned, so there will be discrepancies between the highest and lowest for various reasons. So experience is probably the biggest player between the min and the max.
     
  4. May 13, 2012 #3
    GDP is not as measure of personal income but of the nations weath by its producion and worth of goods and services. While you can break it down into a per capita basis, which would then reflect more a standard of living.
     
    Last edited by a moderator: May 6, 2017
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