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Google and Average Revenue Product of Labour

Geoff Riley

13th November 2009

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Google’s headcount quadrupled between 2005 and 2009 but for some years the revenue per employee was in decline. This is now in reverse and income from each worked employed is now at a 3-year high at just over $300,000 a year! I might use this chart as a teaching aid when teaching labour market economics - Google is perhaps the world’s biggest advertising agency and it finds even more ways to monetise its services from month to month - whilst keeping the bulk of core functions free to users.

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Geoff Riley

Geoff Riley FRSA has been teaching Economics for nearly forty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD and Revision conferences in the UK and overseas.

@tutor2uGeoff

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