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 a lead content editor for Invezz. He's an avid trader and golfer, who spends an inordinate amount of time watching Leicester City and the… read more.