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(In the same way, America's enormous, trade-barrier free domestic market facilitated the development of industrial production at massive scale a century ago, helping the American economy leap to an extraordinary productivity advantage over the rest of the world).
So in the industries Amazon is most likely to draw its workers from, there's evidence that Miami's labor force has a slight productivity advantage over the Midwestern cities.
While migrant-native payroll tax differentials might account for some of this gap, we argue that the observed patterns are hard to explain without some role for a migrant productivity advantage over natives, especially in less skilled jobs.
Since the advantage is confined to less skilled positions, we argue that employers' payroll tax savings on NLH workers (which are either skill neutral or favor skilled NLH workers) cannot be the only explanation, suggesting that temporary migrant workers may have a productivity advantage over natives in less skilled and low paid jobs.
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And worker-owned enterprises offer a clear productivity advantage.
What could be driving this productivity advantage?
If there is a substantial private productivity advantage, then one would expect Chile's relative performance on national and international tests to have improved over the years in which large numbers of children were transferred into the private sector.
Given the huge productivity advantages this country has over China, there would be many fewer than 700,000 production jobs, but the advantage to the U.S. economy would still be substantial.
So despite biotech's historic legacy of unproven productivity advantages vs Pharma, I'm optimistic that the recent crop of startup companies over the past five years are going to change the picture through more capital efficient, distributed R&D models.
Networked computers arrived some time ago, but their promised productivity advantages have also been slower in coming than expected.
It also has productivity advantages associated with thermophilic growth conditions.
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