Fear factor

This article describes the term 'fear factor' in its economic sense. For the television show, see Fear Factor.

The fear factor in occupational terminology refers to the increased per-worker productivity resulting from the threat of impending layoffs. The resultant productivity boost is almost always temporary, since health-related reasons dictate that workers cannot maintain this level of increased output. Some economists have proposed that the economic growth during the early 2000s jobless recovery is a result of this phenomenon.

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