Learning by doing

Updated: Aug 20, 2021

When a worker’s productivity increases through practice. This concept is used in some endogenous growth models to explain increasing returns to human capital. Except in the case where spillovers are worldwide, learning by doing gives a competitive advantage to existing producers, who necessarily have more experience than new entrants. Learning by doing is often characterized by productivity increasing in cumulative total output of a product.

Reference: Oxford Press Dictonary of Economics, 5th edt.

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James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.