Average Labor Cost Research Articles

Analysis of The Impact of Factors Affecting the Recovery of Small and Medium Enterprises in Vietnam with the Goal of Sustainable Development in the Context of Economic Crisis

Objective: The article analyzes the impact of various factors on the profitability of small and medium-sized enterprises (SMEs) in Vietnam amidst an economic crisis, using a dataset of Vietnamese SMEs from 2016 to 2018 across different provinces nationwide. Method: Employing panel data regression techniques in two forms: Fixed Effects (FE) and Random Effects (RE) models to estimate the impact of factors on enterprise profitability. Results and Discussion: Through estimating the two models on the article's dataset, the RE model shows that the coefficients of the explanatory variables in the model are statistically significant, whereas the FE model's coefficients are not. The estimation results from the RE model indicate that all variables including equity value, number of foreign workers, number of sectors the enterprise operates in the dummy variable for state support, average labour cost, and the dummy variable for the main operating sector of the enterprise affect the profitability of the enterprise. The RE model results suggest that the most significant factors impacting enterprise profitability are the business sector and state support. We need to have policies that create favorable conditions for businesses to achieve sustainable development goals (SDG). Conclusions: Results from the estimated model show that the most important factors affecting business profits are the business sector and state support. The state and businesses need to take measures to innovate activities to help businesses develop sustainably during the economic crisis.

Impact of productivity drivers on the performance of manufacturing firms

A considerable number of research indicates that a nation's industrial sector plays a crucial role in its economic growth. Therefore, it is crucial to research the productivity drivers among businesses engaged in the manufacturing sector to create a sound, inclusive, long-lasting, and innovative industry. Thus, as a micro-perspective of industrialization, this study looks into the main productivity drivers of manufacturing firms in Nigeria. The study analyses an imbalanced panel firm-level dataset from 2007 to 2019 using the simultaneous approach of the stochastic frontier to achieve its goal. Our research shows that Nigerian manufacturing firms deal with growing returns to scale and a high labour intensity. For policy actions, it was recommended that a realistic industrialization strategy has to be micro-founded. This strategy should prioritise large-scale industrial companies, promote exports, and provide a steady supply of electricity. The findings also show that small and micro firms in Nigeria are more productive than large manufacturing firms, even though the frequency of power outages and average labour costs impede the productivity of these firms.

3D printing feasibility of a controlled dynamization device for external circular fixation

Aimto assess the small-scale 3D printing feasibility and cost estimation of a device for controlled dynamization. Materials and MethodThe two-part device previously developed by our research group was printed with a carbon fiber-reinforced nylon filament (Gen3 CarbonX™ PA6+CF, 3DXTECH Additive Manufacturing) by a professional 3D printer (FUNMAT HT, Intamsys). Electricity, material, and labor costs for production in a Brazilian city in the Santa Catarina state were calculated. ResultsThe devices for controlled dynamization were successfully printed in accordance with the planned design and dimensions. Six out of 38 printed devices presented defects in the bolt hole and were discarded. The average printing time per device was 1.9 h. The average electricity, material, and labor costs per printed device were respectively US$0.71, US$13.55, and US$3.04. The total production cost per device reaches approximately US$20 by adding the average cost of defective devices (15 %). Conclusion3D printing of the controlled dynamization device is feasible and its cost seems affordable to most healthcare services, which could optimize the consolidation of diaphyseal fractures and reduce treatment time for patients.

2437. The Impact of Healthcare Associated Infections on Costs and Lengths of Stay 2019-2023

Abstract Background As 85% of hospitals in the U.S. face unsustainable operating margins, extraordinary labor costs (LC) from nursing shortages, and have under resourced infection prevention departments, updated assessments of the costs of healthcare associated infections (HAI) are needed. However, most published cost analyses are either more than a decade old, or did not adjust for timing of infection. We sought to determine excess lengths of stay (LOS) and LC associated with HAI during the COVID-19 era, while adjusting for timing of infection. Timing of Infection Onset In Patients with an HAI Legend: dark orange = days before infection; light orange = days after infection; yellow bar = geometric mean national average length of stay of uninfected patients with the same diagnosis code; green circle = mean length of stay of local uninfected controls Methods All inpatients in an academic tertiary care center and 4 community hospitals in Western NY from 01-01-19 to 12-31-22 were included. Using nationally standardized definitions of catheter-associated urinary tract (CAUTI), central line associated bloodstream (CLABSI), and surgical site infections (SSI), 728 HAIs were identified and compared to patients during the same encounter with the same diagnosis codes (DRG) without an HAI (n= 90,046). Only days after infection onset were used to calculate excess LOS and cost. Results The mean yearly standardized infection ratios (SIRs), as defined by the National Healthcare Safety Network, were 0.89, 0.98, and 1.14 for CLABSI, CAUTI and SSI, respectively. Patients with an HAI had significantly higher LC and longer post-infection LOS (all p-values < 0.005) compared to a national benchmark and their DRG-matched HAI-negative counterparts. Per admission, the average excess labor cost and excess LOS were $43,975, 13.4 days for CLABSI; $31,253, 8.9 days for CAUTI; and $5,985, 1.4 days for SSI (Table). The 4-year total was $23.4 M, and 4810 excess days. 100% of CLABSI and CAUTI occurred after the 13th day, and the pre and post-infection LOS were similar. SSI occurred early in admission, and the post-infection LOS was longer than the pre-infection LOS (Figure). Re-admission occurred for 83% of SSI. For CLABSI and CAUTI excess LOS and costs increased 178% over the study period. Conclusion These findings suggest that for CLABSI and CAUTI, minimizing pre-infection LOS can provide a greater economic and safety impact than focusing entirely on preventing the infection. However, for SSI, focusing on preventing the infection may provide the greatest benefit. Other hospitals can adjust these data based on their individual SIRs. Disclosures All Authors: No reported disclosures

The interdependencies between the private and public sectors in open economies

Empirical evidence shows that countries with larger public sectors also have larger trade shares and a larger share of firms that export. These links between the public and the private sector are reconciled in an analytically tractable general equilibrium model allowing for a two-way causal relation between size (and the composition) of the public sector and openness and industry structure of the private sector. First, a larger public sector or a larger share of public expenditure used for public employment (alternative to transfers) results in a more open private sector (trade share and fraction of firms exporting), and it is also associated with more fat-tailedness of the firm size distribution, higher average productivity, lower average unit labour costs, and better wage competitiveness and terms of trade. These outcomes are driven by endogenous entry and selection of firms. Second, for optimal fiscal policies, international spillovers imply that non-cooperative policies have an upward bias in the overall size of the public sector, but a downward bias in transfers as a share of public expenditures. Trade liberalization and the degree of firm heterogeneity magnify these biases and thereby influence the size and structure of public expenditures.

A comparative analysis of organic and conventional horticultural farming in the Getasan District, Semarang Indonesia

The organic horticultural farming system is a horticultural farming technique that relies on natural materials in its production and is a sustainable agriculture, in contrast to the conventional horticultural farming system which still relies on chemicals in its production process. The purpose of this research was to compare organic and conventional horticultural farming systems in Getasan district, Semarang. This study is a cross-sectional descriptive-analytical study that employed survey methodologies. This study was conducted from July to December 2019 using a sample of 314 respondents, 90 organic horticulture farmers and 224 conventional horticulture farmers as research subjects. Research results showed that the average total additional cost of restoring soil nutrients in 100 m2 / year for organic horticulture farming was IDR. 69,958.33 less than the cost for conventional farming systems, which was IDR. 79,550.00 per 100 m2 per year, with a p-value of 0.032*. The cost of purchasing fertilizer in year / 100m2 on a conventional horticultural farm was IDR. 90,575.78, greater than the cost of organic horticulture farming which was only IDR. 73,170.38 with a p-value< 0,001*. The average yield of organic horticulture farms was somewhat higher than that of conventional farms during each growing season. The average annual income from yields in 100 m2/year for organic horticulture production was IDR 2,449,246.32, while conventional IDR. 2,369,641.10 with p-value of 0.441 although not statistically significant. The average profit per 100 m2 / year for an organic horticultural farming system was IRD. 1,549,303.42, which is greater than the profit value for a conventional horticultural farming system, which was IDR. 1,450,109.82, 959,289.06, although statistically not significant, with p-value = 0.228. The total annual production cost for the organic horticulture farming system was less than the conventional system, which was IDR 901,346.78 for the organic horticulture farming system and IDR. 921,084.17 for conventional, for every 100 m2 / year with p-value = 0.383, even though not statistically significant. Statistically, there was no significant difference in labor costs between the two agricultural systems, p-value 0.702, but descriptive analysis shows that the average labor cost per 100 m2/year for organic horticulture farming was IDR. 588,859.57, which is less than IDR. 591,760.50 for conventional horticulture farming. Based on the parameters analyzed, the outcome of this study demonstrates that the organic horticulture farming system is superior to the conventional horticultural farming system. Key words: Environmental value Fertilization costs, Cultivation profits, Labor expenses, Production costs

COSTS AND RETURN OF FARO-44 RICE FARMERS’ BENEFICIARIES OF THE FADAMA III ADDITIONAL FINANCE II IN TARABA STATE, NIGERIA

The study was carried out to analyse the costs and return of faro-44 rice farmers’ beneficiaries of the fadama III additional finance II in Taraba State, Nigeria. Multi-stage sampling procedure was used to select the 500 respondents. Data were analyzed using descriptive statistics (mean, percentages and tables) and inferential statistics (farm budget techniques or cost-benefit analysis). The findings showed that in wet cropping season, average labour cost of ploughing and harrowing was N23,600.23 (11.84%) with t-value of 7.1268 and significant at P≤0.01. In dry and wet cropping season, cost of land clearing was N32,500.33 (13.18%) and N17,500.00 (8.78%) with t-value of 3.4534 significant at P≤0.01. Cost of planting, harvesting, threshing, winnowing, bagging and were significant at P≤0.01 with their corresponding t-values of 3.5407; 5.9132; 4.4771; 3.5463 and 5.4935, respectively. In dry season, the respondents realized N1,569,780.00 as total revenue from 6,156 kg of paddy rice produced compared to N696,795.00 as total revenue in wet season. Similarly, sale of rice straws yielded total value of N108,800.00 in dry season compared to N29,200.00 in wet season. The respondents consumed 372 bags more rice in wet season valued at N61,380.00 compared to 164 bags in dry season valued at N41,820.00. The results further disclosed that dry season faro-44 rice farmers incurred total cost of N304,738.91 compared to wet season total cost of N225,840.33. Realizable revenue of N1,720,400.00 in dry season and N787,375.00 in wet season with net farm income of N1,415,661.09 and N561,534.67 in dry and wet seasons, respectively. With profit index of 5.74 and 2.82 in dry and wet seasons, respectively, the faro-44 rice farmers realized more profits in dry season as it is also glaring from the rate of returns on investment (RRI) of 4.65 (dry season) and 2.49 RRI in wet season. These results indicated that faro-44 rice farming is profitable in Taraba State meaning that for every N1 invested in faro-44 rice production, the farmers realized N4.65 and N2.49 in dry and wet seasons, respectively. The study concluded that faro-44 rice productivity is profitable in Taraba State; and that ploughing and harrowing was major on-farm rice activity carried out in wet season while land clearing was majorly an activity of dry season. It was recommended that faro-44 rice farmers in Taraba State should be given more cash-for-work supports; advisory services; supports for non-farm activities and capacity building on agribusiness, enterprise of farmers’ choice, record keeping.

Cost of Implementing an Evidence-Based Intervention to Support Safer Use of Antipsychotics in Youth.

To estimate the cost of implementing a clinical program designed to support safer use of antipsychotics in children and adolescents (youth) age 3-17years at the time of initiating an antipsychotic medication. We calculate the costs of implementing a psychiatric consultation and navigation program for youth prescribed antipsychotic medications across 4 health systems, which included an electronic health record (EHR) decision support tool, consultation with a child and adolescent psychiatrist, and up to 6months of behavioral health care navigation, as well as telemental health for patients (n = 348). Cost data were collected for both start-up and ongoing intervention phases and are estimated over a 1-year period. Data sources included study records and time-in-motion reports, analyzed from a health system perspective. Costs included both labor and nonlabor costs (2019 US dollars). The average total start-up and ongoing costs per health system were $34,007 and $185,174, respectively. The average total cost per patient was $2,128. The highest average ongoing labor cost components were telemental health ($901 per patient), followed by child and adolescent psychiatrist consultation ($659), and the lowest cost component was primary care/behavioral health provider time to review/respond to the EHR decision support tool and case consultation ($24). For health systems considering programs to promote safer and targeted use of antipsychotics among youth, this study provides estimates of the full start-up and ongoing costs of an EHR decision support tool, psychiatric consultation service, and psychotherapeutic services for patients and families.Trial registration: Clinicaltrials.gov, NCT03448575.

Health care utilizations and costs of Campylobacter enteritis in Germany: A claims data analysis.

The number of reported cases of Campylobacter enteritis (CE) remains on a high level in many parts of the world. The aim of this study was to analyze the health care utilizations and direct and indirect costs of CE and sequelae of patients insured by a large health insurance with 26 million members in Germany. Claims data of insurants with at least one CE diagnosis in 2017 (n = 13,150) were provided, of which 9,945 were included in the analysis of health care utilizations and costs. If medical services were not diagnosis-linked, CE-associated costs were estimated in comparison to up to three healthy controls per CE patient. Indirect costs were calculated by multiplying the work incapacities by the average labor costs. Total costs of CE in Germany were extrapolated by including all officially reported CE cases in 2017 using Monte Carlo simulations. Insurants showed a lower rate of 56 CE diagnoses per 100,000 than German surveillance data for 2017, but with a similar age, gender and regional distribution. Of those CE cases, 6.3% developed post-infectious reactive arthritis, Guillain-Barré syndrome (GBS), inflammatory bowel disease (IBD) and/or irritable bowel syndrome (IBS). Health care utilizations differed depending on CE severity, age and gender. Average CE-specific costs per patient receiving outpatient care were € 524 (95% CI 495-560) over a 12-month period, whereas costs per hospitalized CE case amounted to € 2,830 (2,769-2,905). The analyzed partial costs of sequelae ranged between € 221 (IBS) and € 22,721 (GBS) per patient per 12 months. Total costs of CE and sequelae extrapolated to Germany 2017 ranged between € 74.25 and € 95.19 million, of which 10-30% were due to sequelae. CE is associated with a substantial economic burden in Germany, also due to care-intensive long-lasting sequelae. However, uncertainties remain as to the causal relationship of IBD and IBS after CE.

Time and motion study of hepatitis C virus point-of-care testing in community pharmacies

BackgroundPoint-of-care (POC) testing for hepatitis C virus (HCV) is readily available for implementation in community pharmacies, but it is unknown how feasible administration of the tests would be in the current community pharmacy model. ObjectiveThe primary objective of this study was to describe time associated with each step in a pharmacy HCV screening program and compare the results to influenza management in the pharmacy workflow. MethodsFor this time and motion study, the process was broken into 10 categories. A standardized patient was used for each location to accurately assess and compare the integration of HCV testing in the various workflows. Data were collected for each category during 2 random visits at each of 6 community pharmacies. Times were averaged, and a standard deviation calculated for each specific category. The data were then compared to previous time-in-motion values collected for influenza management. ResultsThe average total time (patient identification to completion of visit) to complete the HCV POC test was 59 minutes 44 seconds (+/- 9:23). The average time that pharmacists and technicians actively spent with each patient was 10 minutes 23 seconds and 11 minutes 20 seconds, respectively. The average labor cost per patient for pharmacists and technicians were $11.55 and $3.75, respectively. ConclusionThe hands-on time requirements and workflow associated with offering HCV screening in a pharmacy using the Oraquick HCV rapid antibody test were similar to those noted with other pharmacy based POC testing services. Labor costs could be lessened by delegation of some non-clinical functions to a qualified pharmacy technician. We suggest an HCV rapid antibody test can be incorporated into pharmacy workflow with reasonable efficiency.

Utilization patterns and efficiency gains from use of a fully EHR-integrated COVID-19 self-triage and self-scheduling tool: a retrospective analysis.

Symptom checkers can help address high demand for SARS-CoV2 (COVID-19) testing and care by providing patients with self-service access to triage recommendations. However, health systems may be hesitant to invest in these tools, as their associated efficiency gains have not been studied. We aimed to quantify the operational efficiency gains associated with use of an online COVID-19 symptom checker as an alternative to a telephone hotline. In our health system, ambulatory patients can either use an online symptom checker or a telephone hotline to be triaged and connected to COVID-19 care. We performed a retrospective analysis of adults who used either method between October 20, 2021 and January 10, 2022, using call logs, electronic health record data, and local wages to calculate labor costs. Of the 15 549 total COVID-19 triage encounters, 1820 (11.7%) used only the telephone hotline and 13 729 (88.3%) used the symptom checker. Only 271 (2%) of the patients who used the symptom checker also called the hotline. Hotline encounters required more clinician time compared to those involving the symptom checker (17.8 vs 0.4min/encounter), resulting in higher average labor costs ($24.21 vs $0.55 per encounter). The symptom checker resulted in over 4200 clinician labor hours saved. When given the option, most patients completed COVID-19 triage and visit scheduling online, resulting in substantial efficiency gains. These benefits may encourage health system investment in such tools.

Intelligent Cost Accounting Optimization System of Building Engineering Materials Based on Ant Colony Algorithm

To save money on labour and keep track of the expenses of building engineering materials. This study provides an intelligent accounting and optimization system for building materials costs based on the ant colony algorithm. In the hardware, three relays are used to achieve open phase protection and convert the voltage signal into current signal; in the software, distinguish the material characteristics, identify the material types, use the virtual governance cost method, optimise the cost intelligent accounting mode, and design the software integration management function using integration technology and the ant colony algorithm; and in the hardware, use the virtual governance cost method. The average labour cost of the intelligent building material cost accounting and optimization system in this paper and the other three systems is 1924 (RMB 10,000), 2749 (RMB 10,000), and 2744 (RMB 10,000), respectively, demonstrating that the intelligent building material cost accounting and optimization system integrated with the ant colony algorithm has a better overall performance.

КЛАСТЕРНИЙ АНАЛІЗ ЕЛЕМЕНТІВ БІЗНЕС-МОДЕЛЕЙ ІТ-ПІДПРИЄМСТВ УКРАЇНИ

The article analyzes the elements of business models of Ukrainian IT companies in the context of the digital services recipients' value development with. The results of data clustering in the following directions are gathered and analyzed: the range of industries; range of services provided by enterprises; scale of enterprises; share of customer base by categories of financial turnover. Clustering is performed by the k-means method, the optimal number of clusters is determined by the methods elbow and silhouette. All selected categories were divided into five clusters. The centroids of clusters were determined and the analysis of companies close to centroids in all the indicated directions was carried out. Clustering by indicators of the percentage of types of provided services and the percentage of industries was carried out with the inclusion of the value of variance. Thus, clustering reflects not only the proximity of enterprises in the predominance of certain types of services or sectors of the economy, but also the breadth of the range of services covered and the diversity of the customer base. Groups of enterprises close to these elements of business models were formed and a comparative analysis of companies affiliation to clusters by categories was conducted. The enterprises from the formed groups are analyzed taking into account the declared cost of an hour of work and the share of the customer base by categories of financial turnover. Regularities have been established between the share of the company's employees registered in Ukraine, the share of the customer base by categories of financial turnover and the average hourly labour costs, as well as the advantages in providing certain types of services. It is concluded that hourly labour costs are significantly lower and the predominance in the client base of small and medium-sized businesses in medium and small enterprises with a high proportion of Ukrainian team members. The results of the study can be useful for adjusting the business models of IT companies, as well as to justify the negative consequences of possible changes in the existing legal relations in Ukraine between employees and employers in the field of IT.

Analysis of the influence of mobile phones' material composition on the economic profitability of their manual dismantling

This work presents a systematic characterisation of 100 waste mobile phones (73 feature phones and 23 smartphones) produced between 1989 and 2016. All items were inventoried and the evolvement of the relative abundances of their macro-components (mechanic and electro-mechanic parts, electronics and others) and materials was investigated. The average lifetime was 15.1 years for feature phones and 6.4 years for smartphones. The main component was plastic, on average 46%-wt. in feature phones and 37%-wt. in smartphones; over the years electronics' and plastic's amounts decreased (respectively 80% and 70%), while metal components' amount increased (12%). A cost-benefit analysis explored the profitability of the management of waste mobile phones through manual dismantling followed by the sale of the separated components and materials. The average cost of manual dismantling was estimated as 6.93 € per item according to EU average labour costs and 1.50 € per item based on minimum EU labour costs. According to the performed economic analysis, the actual market prices for the potentially recoverable materials and components of waste mobile phones were not able (particularly mixed plastics) to counterbalance the costs of manual dismantling according to the European standard labour costs.

Rate Setting for Labour Costs Related to Pharmacovigilance System Inspections

The inspection of pharmacovigilance systems is regulated by the Good Pharmacovigilance Practices (GVP) and local laws and regulations. Inspections may be carried out by audit teams of competent authorities as part of regulatory activities or business agreements. So far, there have been no studies dealing with rate setting for competent authorities labour costs in connection with onsite or documentary inspections of pharmacovigilance systems.The aim of the study was to develop scientifically valid rate setting criteria for labour costs related to onsite or documentary inspections of pharmacovigilance systems.Materials and methods: the assessment of labour costs was carried out by surveying experts of two Eurasian Economic Union (EAEU) countries who have experience in preparing and conducting evaluation and inspection of pharmacovigilance systems. The calculation of the experts’ time costs was performed automatically using the CrocoTime software. The expected workload for experts in 2022 was estimated based on the reports over the last 5 years (2016–2020) containing information on the number of foreign marketing authorisations, and the number of medicines under development according to national registers of medicinal products of the EAEU member states.Results: the study calculated the average expert labour costs and estimated workload for the EAEU competent authorities in 2022. It was demonstrated that the average labour costs are comparable in EAEU member states, however, estimated amount of labour may change (both increase or decrease).Conclusions: further study of rate setting for labour costs related to pharmacovigilance documentary inspections and study of competent authorities staffing could be performed by a dedicated division, e.g. of the Eurasian Academy of Good Practices. A constructive discussion of approaches to the improvement of control over pharmacovigilance systems will increase availability of efficacious and safe medicines of assured quality for the population and help pharmaceutical companies and regulatory authorities manage financial and reputational risks.

197. Modest cost reduction associated with initial ERAS implementation in lumbar spine fusion

197. Modest cost reduction associated with initial ERAS implementation in lumbar spine fusion

CEO gender and corporate labor cost

AbstractWe examine the impact of CEO gender on firm‐level average labor cost. In a sample of U.S. public firms with voluntary labor cost disclosure, we find that firms with female CEOs have significantly lower average labor cost than firms with male CEOs. This effect is robust to the use of propensity score matching approach to alleviate the impact of possible selection bias and endogeneity concerns. The results are stronger in a subsample of firms where CEO turnover introduces CEO gender change. We hypothesize that female CEOs may be more risk averse and tend to pursue less risky corporate policies, leading to a lower equilibrium employee wage. Alternatively, female CEOs may offer higher non‐monetary employee benefits in lieu of monetary compensation. Our empirical results do not support the risk aversion hypothesis, whereas we find robust evidence that firms with female CEOs offer higher non‐monetary employee benefits than firms with male CEOs, especially in human capital‐intensive firms.

Workforce Scheduling with Order-Picking Assignments in Distribution Facilities

Scheduling the availability of order pickers is crucial for effective operations in a distribution facility with manual order pickers. When order-picking activities can only be performed in specific time windows, it is essential to jointly solve the order picker shift scheduling problem and the order picker planning problem of assigning and sequencing individual orders to order pickers. This requires decisions regarding the number of order pickers to schedule, shift start and end times, break times, as well as the assignment and timing of order-picking activities. We call this the order picker scheduling problem and present two formulations. A branch-and-price algorithm and a metaheuristic are developed to solve the problem. Numerical experiments illustrate that the metaheuristic finds near-optimal solutions at 80% shorter computation times. A case study at the largest supermarket chain in The Netherlands shows the applicability of the solution approach in a real-life business application. In particular, different shift structures are analyzed, and it is concluded that the retailer can increase the minimum compensated duration for employed workers from six hours to seven or eight hours while reducing the average labor cost with up to 5% savings when a 15-minute flexibility is implemented in the scheduling of break times.

Drivers of manufacturing firms’ productivity: a micro-perspective to industrialization in Nigeria

A significant body of literature suggests that the manufacturing sector has a strategic role in the economic development of a country. To develop a sound, inclusive, sustained and innovative manufacturing sector, it is, therefore, essential to study the drivers of productivity among firms operating in the sector. Thus, this study investigates the major determinants of manufacturing firms’ productivity in Nigeria as a micro-perspective to industrialization. To realize its objective, the study uses simultaneous technique of stochastic frontier to analyse 2007–2014 unbalanced panel firm-level dataset. Our findings reveal that manufacturing firms in Nigeria are heavily labour intensive and face increasing returns to scale. The results further disclose that while average labour costs or earnings and frequency of power outage exert negative effects on the firms’ productivity or efficiency level, micro and small firms are found to more efficient than large manufacturing firms. Also, exporting manufacturing firms are more efficient than their non-exporting counterparts. Policy implications of the study are that to formulate pragmatic industrialization policy, it has to be micro-founded in nature and such a policy should encourage exportation, provision of stable power supply and pay special attention to large-scale manufacturing firms.

Heterogeneity in the extraction of labor from labor power and persistence of wage inequality

AbstractThere is evidence that labor intensity is endogenous to wage compensation and that inter‐ and intra‐industry wage differentials are non‐negligible and persistent. We explore the implications of firms periodically choosing between alternative wage compensation strategies to extract labor from labor power more effectively. The frequency distribution of labor extraction strategies across firms is endogenously time‐varying as driven by satisficing evolutionary dynamics that generate wage inequality as a stable long‐run equilibrium under theoretically and empirically plausible conditions. Firms willing to extract more labor from labor power remunerate workers with a higher wage. Yet a larger proportion of firms following such a strategy does not necessarily result in a lower (higher) average unit labor cost (profit share) and hence in higher average rates of profit and saving‐determined output growth. The larger the proportion of firms that attempt to extract more labor from labor power by remunerating workers with a higher wage, the less these firms are successful. This result can be seen as characterizing another potential contradiction of the capitalist economy.