Also known as the Solow residual (in honor of Nobel laureate Robert Solow), total factor productivity represents the ability to produce more output from the same input.

However, it is often seen as a measure of technological change. TFP also reflects additional factors like economies of scale, resources allocations, measurement errors, and also growth in disembodied technology.

TFP is calculated as a residual and a catch-all term that captures the impact of all growth factors not explicitly measured by economists. Unmeasured inputs and the inaccurately measured capital and worker inputs affect the measured TFP residual.

All in all, these are the factors presented that determine worker productivity in general. As had been noted, these traditional factors had been in use for other applied productivity work.