Learning-by-doing refers to the hypothesis that labor learns through experience in the production process, thereby allowing economies of scale in future output.
The increase in productivity diminishes over time.
The first theoretical model of this kind was constructed by American economist Kenneth Arrow (1921- ), but many empirical studies had been carried out in the early part of the 20th century.
K J Arrow, 'The Economic Implications of Learning by Doing', Review of Economic Studies, vol. xxix (1962), 155-73