An analysis of labour productivity growth in the Canadian tourism/hospitality industry

Abstract

This paper examines the impact of information communication technology (ICT), human capital, and human resource management on labour productivity growth in the Canadian tourism/hospitality industries using the Canadian Workplace and Employee Survey from 1999 to 2005. Feasible generalized least squares and generalized method of moments estimations are applied to the model. The empirical results show that Solow productivity paradox does exist in these industries. Adoption of ICT does not significantly improve labour productivity. The evidence shows that human capital is a determinant of labour productivity growth. This study categorizes training into on-the-job and classroom trainings for different skills. The managerial skills classroom training has positive and significant impact on labour productivity growth. The managerial skills on-the-job training and the other skills on-the-job and classroom training have negligible impact on labour productivity growth.