The impact of aging on labor productivity: integrating the human capital perspective

In the past forty years, China has made great achievements in economic construction, and also faces many difficulties and challenges. In the critical period of changing the development way, China should not only pay attention to the promotion of labor productivity, but also take into account the synchronization of labor compensation and productivity. From the perspective of social capital as informal institution, we use CFPS2010 data to objectively assess the gap between wages and labor productivity in China, and examine the impact of social capital on the gap and the conduction mechanism. With the help of stochastic frontier analysis, we calculate the gap between wages and labor productivity in Chinese labor market, and the mean gap is about 33.2%~45.7%. On this basis, the empirical study shows that, social capital can narrow the gap between wages and labor productivity remarkably. On average, if social capital expands by 1%, then the gap will narrow by 3.42%. These labor forces can benefit more from social capital whose wages are closer to their productivity. It means that social capital widens the disparity between different labor groups in a way. To overcome the endogenous problem, we construct two instrumental variables of social capital: the average cash gift at community level, and the importance of foreign dialects for labors. We also design a placebo test. It has been verified that social capital itself, rather than the other characteristics of the labor forces associated with their social capital, has affected the gap between wages and labor productivity. A series of robustness tests support above conclusions. Furthermore, the analysis of mediating effect model shows the reasons why social capital can narrow the gap between wages and labor productivity as follows: firstly, the labor forces who have more social capital can join the formal sectors more easily, in which the wages are closer to labor productivity; secondly, the labor forces who have more social capital can get more trust, resources and promotion opportunities; thirdly, social capital helps to reduce information asymmetry and improve the degree of matching between labor forces and jobs by sending messages. It is worth noting that, if more and more persons use social capital within a region, then social capital effect for individual labor will be weaken. As an informal resource allocation method, social capital gives a preferential treatment for a part of labor forces. With the advancement of marketization, the role of social capital has been continuously weakened. Therefore, market-oriented allocation and regular society are the ultimate choices for the reform. In the new era, China should perfect the system and mechanism of distributing according to factors, pay efforts to reduce the gap between wages and labor productivity, actively create a market environment with free flow of labor, flexible price response and fair and orderly competition, and promote the income distribution more reasonable and orderly.

Rural development: a geographical perspective: K. Hoggart and H. Buller, 317 pp., 1987, Croom Helm, London

The purpose of this study is to examine the impact of FDI on manufacturing labor productivity in Zhejiang, Jiangsu and Shanghai using panel data between 2007 and 2020. This study investigates the differential effects of FDI in four manufacturing subsectors: Agriculture and Food Industries, Basic Industries, Light Industries and Heavy Industries. First, the empirical result shows that FDI has a significantly positive impact on manufacturing labor productivity in Zhejiang, Jiangsu and Shanghai. FDI has a greater impact on labor productivity in Jiangsu compared to Zhejiang and Shanghai. Second, R&D expenditure has a significant positive effect on labor productivity both in Zhejiang and Jiangsu. Third, human capital significantly promotes labor productivity between Jiangsu and Shanghai. Moreover, foreign-funded firms’ labor productivity on labor productivity is significant and positive in Shanghai. However, domestic investment capital and female employees are insignificant to labor productivity in Zhejiang, Jiangsu and Shanghai. The impact of FDI on labor productivity varies across four manufacturing subsectors in Zhejiang, Jiangsu and Shanghai. In Zhejiang, FDI benefits labor productivity in Agriculture and Food Industries. R&D expenditure is significantly positive to labor productivity in Agriculture and Food Industries, Basic Industries, Light Industries and Heavy Industries. Labor productivity in Agriculture and Food Industries, and Light Industries is positively affected by domestic investment capital, but it is not affected by human capital, female employees or foreign-funded firms’ labor productivity. In Jiangsu, FDI has a significant and positive impact on labor productivity in Agriculture and Food Industries. Domestic investment capital and foreign-funded firms’ labor productivity have a greater positive effect on Light Industries. R&D expenditure significantly promotes labor productivity in Heavy Industries, and Agriculture and Food Industries. However, labor productivity is not affected by human capital or female employees. In Shanghai, FDI has a significant positive impact on labor productivity of the four manufacturing sub-industries. Human capital to labor productivity is significantly positive in Agriculture and Food Industries. In Basic Industries and Agriculture and Food Industries, female employees are significantly positive to labor productivity. Foreign-funded firms’ labor productivity to labor productivity shows a significant and positive impact in Light Industries, Heavy Industries and Basic Industries whereas it is insignificant in Agriculture and Food Industries.

Based on the panel data of 30 provinces in China from 2011 to 2020, this paper empirically studies the impact and mechanism of digital finance on labor productivity in China by using two-way fixed effect model and mediation effect model. Research shows that digital finance can promote labor productivity. However, there are differences in the driving effects of coverage breadth, depth and digitization level of digital finance on labor productivity. In terms of the direction of its impact on labor productivity, coverage breadth and depth have a positive effect, while the digitization level has a negative effect. Moreover, there are differences in the promotion effect of digital finance on labor productivity in different regions of China. The positive effect is significant in the eastern region, the positive effect is insignificant in the central region, and the reverse effect is significant in the western region. Further research shows that innovation plays a mediating role in the improvement of labor productivity driven by digital finance. The conclusions of this paper will provide reliable empirical evidence and policy implications for improving labor productivity and promoting high-quality economic development under the background of digital economy.

Purpose This study aims to examine the direct impact of digital transformation on human resource efficiency in Vietnamese commercial banks and investigates the distinct moderating roles of labor cost, labor productivity and labor size in shaping this relationship. Design/methodology/approach Using panel data from 12 listed Vietnamese commercial banks (2014–2023), this study uses feasible GLS regression to examine the impact of digital transformation on human resource efficiency. Labor cost, labor productivity and labor size are modeled as moderating variables, while bank-specific financial characteristics are included as controls. Findings The research findings indicate that digital transformation investments by commercial banks enhance human resource efficiency. Moreover, factors such as labor cost, labor productivity and labor size among digitally skilled employees play a moderating role that amplifies the positive impact of digital transformation on human resource efficiency. Consequently, the outcomes of digital transformation among commercial banks vary depending on their operational context. Notably, supported by government policies, Vietnamese banks have accelerated digital transformation, invested in digital talent and achieved positive performance outcomes. Research limitations/implications The study focuses on listed Vietnamese banks and an accounting-based digital transformation proxy, so results may not extend to unlisted banks or other economies. Nevertheless, findings show that digital transformation investments deliver greater human resource benefits when paired with targeted labor spending and productivity gains – guiding managers and policymakers in sequencing digital and human-capital investments. Originality/value By integrating the resource-based view, human-capital theory and lean thinking, this study provides novel emerging-market evidence linking digital transformation to bank-level human resource efficiency and reveals how labor cost, productivity and scale shape its effects—offering policy implications for coordinated technology and skill investments.

This paper presents new empirical evidence on the effect of population aging on economic growth in China. Aging is widely assumed to impact economic growth by shaping the labor market performance and human capital. Using an interactive fixed effects model and a provincial panel data set during 1990–2015, and also exploiting the predicted province‐by‐year variation in population aging fraction as an instrument, we examine the impact of population aging on the growth rate of gross domestic product (GDP) per capita, labor force ratio, and labor productivity. The results show that a 10% increase in the fraction of the population aged 65+ decreases the growth rate of GDP per capita by approximately 2%. Furthermore, channel decomposition shows that half of the decrease is due to slower growth of the labor force ratio, whereas the rest may be due to slower productivity growth. In addition, the negative effect of aging on GDP growth is more substantial after the year 2000, and the effect of aging on the labor force ratio and productivity shows different patterns during different periods.

The purpose of this chapter is to investigate the relationship between labour productivity, human capital and international R&D spillover during the period 1982–2011. It estimates a single equation model which employs long-run cointegration analysis and short-run analysis (ECM). It is based on annual data collected from the World Bank and the Ministry of Planning in Egypt and the OECD database for the period 1982–2011. The results show a conventional result for international R&D and human capital. we infer from the emperical results of this study the significant positive role played by international R&D and human capital on labour productivity. This chapter highlights an important area for policy decision-making which stresses the idea that human capital’s absorptive capacity, enhanced by high-quality education, intensifies the positive effect of R&D spillover on labour productivity. This was determined by our survey of the literature and our empirical model. This chapter takes a different approach from the literature by examining the effect of international R&D spillover and human capital on labour productivity in the Egyptian manufacturing industries. Other studies were conducted by examining the effect of these variables on either total factor productivity or gross domestic product of recipient countries. This study was conducted on a limited scale on Egypt with the research method used in this chapter and with emphasis on human capital.

This study examines the impact of human capital and gender dynamics in leadership on labor productivity and technical efficiency in firms from Bangladesh, Indonesia, and Pakistan. Using data from the World Bank Enterprise Survey, the analysis uses Ordinary Least Squares (OLS) regression, Data Envelopment Analysis (DEA), and Tobit regression techniques. The findings reveal significant variations in labor productivity and efficiency among firms in the three countries, influenced by factors such as firm characteristics, managerial experience, workforce skill composition, and gender leadership. The results indicate that higher average wages positively impact labor productivity and technical efficiency across all three countries, supporting the efficiency wage theory. The firm size shows varied impacts on performance, with medium-sized firms generally enhancing labor[YA1] productivity and technical efficiency, while the effects of large firms vary by country context. Older firms are more labor-productive and technically efficient, and highly skilled workers boost labor productivity in Bangladesh but have mixed effects in other countries. Female CEOs enhance labor productivity in Bangladesh but decrease it in Indonesia, while female managers significantly improve labor productivity in Pakistan. Innovation and R&D investments show diverse impacts, positively affecting labor productivity in Bangladesh and Indonesia but challenging in Indonesia. The study also highlights the need for policies to enhance human capital, foster gender-inclusive leadership, and encourage innovation to improve firm performance in developing economies.

This paper examines the impact of digital inclusive finance development on labor productivity and its transmission channels using panel data from 30 provinces in China during 2011–2020. According to empirical findings, the growth of digital inclusive finance significantly improves labor productivity in China. This conclusion holds even after taking into account endogeneity problems and robustness tests. Regarding transmission channels, digital inclusive finance development enhances labor productivity by promoting capital deepening. From the perspective of the three dimensions of the current digital inclusive finance development stage, the coverage width significantly boosts labor productivity. From a regional perspective, digital inclusive finance development has a more significant impact on labor productivity in the eastern region compared to the central and western areas. From an industry perspective, digital inclusive finance development significantly enhances labor productivity in the primary and tertiary industries.

Based on the panel data of China’s 30 provinces, autonomous regions, and municipalities (hereinafter referred to as provinces) from 2003 to 2020, this paper empirically analyzes the impact of foreign direct investment (hereinafter referred to as FDI) on labor productivity by constructing a fixed-effects model, and further constructs a model to test the moderating effect of fiscal decentralization on the above two variables. The study shows that: 1) China's FDI has a positive promotion effect on labor productivity. 2) Taking 2008 as the boundary, the effect of China's FDI on labor productivity has significant stage heterogeneity. 3) Fiscal revenue decentralization and fiscal expenditure decentralization both positively regulate the relationship between FDI and labor productivity. Therefore, the Chinese government (as well as the governments of other developing economies around the world) needs to consciously introduce high-quality FDI that is suitable for the country's current development situation and to give local governments the right to select and introduce FDI that is suitable for local development to realize high-quality economic development.

The abilities and qualities of labour that influence productivity include higher education, on-the-job training and health. Investment in these improves the abilities of the labour force to innovate and adopt new technologies. Thus, policy dimensions towards building human capital make the difference between inclusive growth and jobless economic growth that leaves large segments of the society behind. However, Sub-Saharan African (SSA) countries are bedeviled by poor performance of their labour markets mostly characterized by rising rate of unemployment, low labour productivity, among others. This study examines the effect of human capital development on labour market outcomes in Sub Saharan African countries while capturing labour market outcomes with labour productivity. Given that education, health and life expectancy are integrals of human capital investments and often viewed as factors determining a country’s labour force, they are employed within a dynamic panel analysis framework using the Generalized method of Moments for 30 SSA countries from 2000-2019. In most developing countries, particularly SSA, the public sector is often significantly larger than the private sector. Given the role of policymakers in labour market performance, the study introduces government effectiveness as a control variable. Empirical results reveal that government expenditure on health and life expectancy exert significant effect on labour productivity, with government expenditure on health being positive and life expectancy being negative. Similarly, the effect of government expenditure on education is insignificant for labour productivity. Government effectiveness affects labour productivity positively and significantly. The study reiterates the importance of human capital in labour market outcomes while suggesting the need for policies that will ensure adequate investment in human capital. Keywords: Education, Health, Labour Productivity, Sub-Saharan Africa, Human Capital. DOI: 10.7176/JESD/13-6-05 Publication date: March 31 st 2022

ObjectivePopulation ageing, as a hot issue in global development, increases the burden of medical resources in society. This study aims to assess the current spatiotemporal evolution and interaction between population ageing and medical resources in mainland China; evaluate the matching level of medical resources to population ageing; and forecast future trends of ageing, medical resources, and the indicator of ageing-resources (IAR).MethodsData on ageing (EPR) and medical resources (NHI, NBHI, and NHTP) were obtained from China Health Statistics Yearbook and China Statistical Yearbook (2011–2020). We employed spatial autocorrelation to examine the spatial–temporal distribution trends and analyzed the spatio-temporal interaction using a Bayesian spatio-temporal effect model. The IAR, an improved evaluation indicator, was used to measure the matching level of medical resources to population ageing with kernel density analysis for visualization. Finally, an ETS-DNN model was used to forecast the trends in population ageing, medical resources, and their matching level over the next decade.ResultsThe study found that China's ageing population and medical resources are growing annually, yet distribution is uneven across districts. There is a spatio-temporal interaction effect between ageing and medical resources, with higher levels of both in Eastern China and lower levels in Western China. The IAR is relatively high in Northwest, North China, and the Yangtze River Delta, but showed a declining trend in North China and the Yangtze River Delta. The hybrid model (ETS-DNN) gained an R2 of 0.9719, and the predicted median IAR for 2030 (0.99) across 31 regions was higher than the median IAR for 2020 (0.93).ConclusionThis study analyzes the relationship between population ageing and medical resources, revealing a spatio-temporal interaction between them. The IAR evaluation indicator highlights the need to address ageing population challenges and cultivate a competent health workforce. The ETS-DNN forecasts indicate higher concentrations of both medical resources and ageing populations in eastern China, emphasizing the need for region-specific ageing security systems and health service industries. The findings provide valuable policy insights for addressing a hyper-aged society in the future.

In the context of the reorientation of the Russian economy towards an innovative development path, the issue of increasing labor productivity has become an important part of state policy.Currently, the country is implementing a large-scale national project «Labor productivity and employment support». The implementation of the project approach to managing labor productivity for the Russian economy is of strategic priority, since its application helps to increase the efficiency of resource use, realize the goals of modernizing production, and stimulate innovation and export activities of domestic enterprises.The aim of the study is to consider the regional aspect of the implementation of the priority national project «Labor productivity and employment support» on the example of the Perm region. The methodological basis of the study are comparative, statistical and expert methods.The paper analyzes the implementation of the national project «Labor productivity and employment support» in the Perm region; presents the actual results of the project; formulates problems in the implementation of project activities; identifies the prospects of the Perm region in the context of setting higher targets for the regional project «Labor productivity and employment support» in comparison with the figures for Russia as a whole.The materials outlined in this article can deepen knowledge about the specifics of the implementation of the priority national project «Labor productivity and employment support» at the regional level, as well as be used to adjust the course implementation of a regional project aimed at improving productivity in the Perm region.

We assess the influence of workforce churning on the relationship between organisational human capital and labour productivity. Building on collective turnover research and human capital theory, we examine how the components of workforce churning (i.e., voluntary turnover, involuntary turnover, and new hires) influence the relationship between existing human capital and labour productivity. Further, we examine how this influence varies according to a firm's technological intensity. Our data come from 1,911 Italian manufacturing firms and reveals that collective voluntary turnover negatively affects the relationship between organisational human capital and labour productivity regardless of an organisation's level of technological intensity. In contrast, collective involuntary turnover enhances the relationship between human capital and labour productivity, and its effect is even stronger for organisations with more technologically intensive operations. Finally, our results suggest that the integration of new hires disrupts the relationship between human capital and productivity, particularly for firms with technologically intensive operations.

P roductivity promotion has received a key attention in contemporary macroeconomic analysis. Productivity of labor driven, in particular, by human capital (i.e. health and education), is seen vitally more important. Labor qualities in terms of health and education (treated as flow and stock variables), have a bearing on labor productivity. The main objective of this paper is to identify the influence on productivity of health and education and delineate their relative impact, using a composite approach to human capital. Towards this end, an Autoregressive-Distributed Lag (ARDL) technique was applied to measure labor productivity over the period 1974-2014. Based on the result of model findings, attempt was made to evaluate their short and long term effects. The model applied in this paper has examined the impact of two key variables i.e. per capita capital and capacity index, in addition to human capital index (health and education) influencing collectively on labor productivity. The results indicate that all variables (Excluding the index of composite Human Capital, flow) are bearing a positive and significant impact on labor productivity in the long run. The coefficient of composite human capital index (health and education, flow variables) was greater than that of composite human capital (health and education, stock variables).