Learning by doing
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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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