Divergence in the Efficiency of Social Production: A Baseline Study

Abstract

The paper focuses on the problems of low labor productivity in a significant part of the world’s countries. Low labor productivity in the country leads to low income of employees and a high level of migration from these countries, creating a tense social situation in countries that accept migrant workers, who become social migrants. Globalization processes typical for the end of the twentieth century did not lead to the alignment of the economic and social development of countries. Changing the quantitative values of the differentiation of social production efficiency regarding the use of human capital should not lead to an erroneous opinion about the possible convergence of the economic development of countries. Instead of the rapid economic growth of third world countries, the twenty-first century shows a high sensitivity of developed countries to crisis phenomena. The gap in the level of economic and social development of countries has only increased in recent years. The analysis of the assessment of variation in labor productivity indicates an increase in production efficiency in countries representing the core of the population and located in its center. The leading countries suffered significant losses during the crisis of 2008–2010, which affects the estimated values of assessment indicators of differentiation and may lead to an unreliable conclusion about convergence.