return on labor

USAGE SUMMARY

The term "return on labor" is a correct and usable phrase in written English.
You can use it when referring to the amount of profit that is made on investments of time and effort. For example, "The company wanted to see a higher return on labor, so they increased wages."

✓ Grammatically correct

News & Media

Science

Academia

Human-verified examples from authoritative sources

Exact Expressions

7 human-written examples

The income here is mostly a return on labor, not capital, but it is often lightly taxed as investment income.

The New York Times

It, too, is essentially a return on labor, not capital, and shouldn't benefit from the low capital gains rate.

The New York Times

"You continue to take your carried interest — a return on labor, not capital invested — and you're paying 15 percent on it instead of high marginal income rates".

The New York Times

I argued that because carried interest is mostly a return on labor effort, not investment capital, the fund manager's income should be characterized as ordinary income, not long-term capital gain).

The New York Times

Because this return represents a return on labor efforts, not a financial return, I have argued in the past that carried interest should be taxed at higher ordinary income rates.

The New York Times

(By all means be a do-it-yourselfer if you have the stomach for it, but don't kid yourself about the return on an investment as opposed to a return on labor).

Forbes

Human-verified similar examples from authoritative sources

Similar Expressions

53 human-written examples

Perhaps, returns on labor and agricultural income are higher among communities that are closer to markets hence making them better off than their rural counterparts.

Ecological Processes

We have complicated mathematical theories of the determinants of returns on capital, returns on labor, in which we talk about two factors of production, capital and labor.

Huffington Post

"Productivity in this country has increased dramatically, but wages haven't kept up, so American workers are not making what the returns on labor should be," Khanna said.

Huffington Post

These formulas can easily be taken to the data to simulate optimal taxes, which we do using U.S. tax return data on labor and capital incomes.

Harvard University

Ensuring that workers get a fair return on their labor is critical.

The New York Times

Expert writing Tips

Best practice

When discussing economic models, clearly distinguish "return on labor" from "return on capital" to avoid ambiguity. Use specific examples to illustrate the differences.

Common error

Avoid using "return on labor" interchangeably with general ROI. While labor contributes to ROI, the former specifically measures the yield from labor costs, while the latter encompasses all investments.

Linguistic Context

The phrase "return on labor" functions as a noun phrase that identifies a specific economic metric. Ludwig indicates that it is primarily used to describe the profitability or yield derived from labor investments.

Expression frequency: Uncommon

Frequent in

News & Media

40%

Science

30%

Academia

30%

Less common in

Formal & Business

0%

Wiki

0%

Reference

0%

Ludwig's WRAP-UP

The phrase "return on labor" is a grammatically correct and usable term that quantifies the economic gains derived from workforce efforts. As highlighted by Ludwig, it's most commonly employed in economic analysis, business management, and workforce assessments. Although less frequent compared to similar financial terms, its consistent usage across authoritative sources like The New York Times and Forbes lends credibility to its relevance. Distinguishing it from general ROI and focusing on labor-specific contributions is crucial for accurate interpretation. Alternatives like "revenue from labor" and "yield on labor" offer nuanced ways to convey similar ideas, making "return on labor" a valuable phrase for precise communication in professional and academic settings.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

return on labour

Simply a British English spelling variant.

yield on labor

Similar to return, but with a focus on the generated yield.

revenue from labor

Focuses specifically on the revenue generated by labor activities.

payoff from labor

Highlights the benefits gained from labor efforts.

return on human capital

Emphasizes the value derived from skills and knowledge of the workforce.

workforce return

Focuses on the overall return generated by the workforce, rather than specifically on labor costs.

business return

This alternative refers to the return of investment in a business, which may include labor costs.

payroll return

Emphasizes the financial return related to payroll expenses.

engagement return

Focuses on the benefits derived from workforce engagement efforts.

work return

A more general term referring to the outcome of work.

FAQs

How is "return on labor" different from "return on capital"?

"Return on labor" focuses on the economic gains derived from workforce efforts and expenses, whereas "return on capital" considers the profits generated from invested assets and financial resources. They are distinct but interconnected metrics.

What's a good alternative to "return on labor"?

Depending on the context, alternatives like "revenue from labor", "payoff from labor", or "yield on labor" might be suitable.

How do you measure "return on labor" effectively?

Measuring "return on labor" requires tracking labor costs, productivity metrics, and revenue generated. Consider factors like employee skills, technology used, and operational efficiency to get a comprehensive assessment.

In what contexts is "return on labor" most frequently used?

"Return on labor" is commonly used in discussions related to economics, business management, and workforce analysis, particularly when assessing productivity, labor costs, and investment strategies.