Fear factor - Definition

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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