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learning by doing

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A term applied to describe an increase in a worker's productivity through practice. This concept is used in some endogenous growth models to explain increasing returns to human capital. Except in the case where spill-overs 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.

Subjects: Social sciencesEconomics

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