Differences In Labor Productivity Research Articles

The impact of industrial labour productivity on regional income differences in China

Since China’s reform and opening up, the eastern coastal areas have taken the lead in development, and formed significant regional development differences. One of the major reasons for the differences is the significant differences in industrial labour productivity between different regions. The purpose of this report is to examine the impact of industrial labour productivity on regional income differences, clarify its impact mechanism, and provide recommendations for regional coordinated development. This report adopted a combination of quantitative and qualitative analysis. It used a regression model to examine the impact of industrial labour productivity on regional income differences in China, and made qualitative analysis to explain the impact mechanism. Through relevant analysis, this report mainly concluded three findings. Firstly, there are significant differences in industrial labour productivity between regions in China. Secondly, industrial labour productivity is proved to be an important factor affecting regional income differences in China. Thirdly, the Chinese government needs to narrow the gap in regional industrial labour productivity from multiple aspects, such as increasing human capital, strengthening technological innovation, optimising the market and institutional environ-ment, improving the incentive mechanism, etc. The research significance of this report lies in verifying the impact of China’s industrial labour productivity on regional income differences, and deeply analysing its impact mechanism. This has important policy implications for narrowing regional income differences in China.

Good Business Practices Improve Productivity in Myanmar’s Manufacturing Sector

We investigate the relationship between business practices and enterprise productivity using panel data with matched employer and employee information from Myanmar. The data show that micro, small, and medium-sized manufacturing enterprises in Myanmar typically adopt only a few modern business practices, and the persistence in the use is extremely low. Even so, we find a positive and economically important association between business practices and productivity. Specifically, the empirical results show that a one standard deviation difference in applied business practices (equivalent to applying an additional 4 to 5 of the 20 business practices in focus) is associated with an 8–10 per cent difference in labour productivity. Utilising the employer–employee information to estimate Mincer-type wage regressions, we find that workers receive about half to two-thirds of the productivity gain in higher wages. Overall, our findings support the notion of business practices as a production technology, and we find that workers and managers split the productivity gains evenly.

Regimes de crescimento nos países centrais e periféricos: uma análise econométrica, 1980-2018

ABSTRACT We explore structural differences in growth patterns and income distribution between central and peripheral countries. We provide dimensions that account for the structural limitations that dependent positions have in the peripheries and semi-peripheries. We conducted an analysis through different estimates of panel data models for 35 central and peripheral countries for the period 1980-2018. In particular, in addition to making the usual estimates of the components of aggregate demand, we include three variables that we consider representative of the dynamics that capital accumulation takes in the periphery: participation in global value chains, levels of foreignization of economies and labor productivity differentials.

Gender Wage Gap among Rural Non-farm Sector Employees in India: Evidence from Nationally Representative Survey

This article examines the gender-wise work participation rate and evaluates the wage disparity between male and female workers employed as either regular or casual employees in rural non-farm sectors. Based on the National Sample Survey data of 2004–2005 and 2019–2020, it is found that the gender inequality (against women) in employment opportunity is not only prevalent in the rural non-farm labour market but also on the rise during the last one and a half decades. The perceived difference in human capabilities between women and men and the non-availability of enough job opportunities could be a major driver of this inequality, apart from the existing social stigma in hiring the women in the rural labour market. This is reflected by the rise in the mean wage difference between two genders during 2004–2005 and 2019–2020. Both the mean and the quantile decomposition results suggest that a higher percentage of gender wage differentials is due to endowment components or labour productivity differences. Because of the existence of the ‘sticky floor’ phenomenon, the wage disparity is relatively larger at the bottom end of the earning distribution. But it reduces when we stride towards higher quintiles on the wage distribution. Hence, it is argued that policies aimed at enhancing the skill endowment of rural women can substantially reduce both the non-farm sector gender wage gap and the inequality in access to non-farm employment.

The optimal delayed retirement age in aging China: Determination and impact analysis

Facing a deepening aging population, nations like China are calling for a gradually delayed retirement policy urgently. Based on the dynamic model of Miyazaki (2014), this paper first examines the difference between the agent's labor productivities in youth and old age (the age difference in labor productivity as defined below). We then establish an agent's optimal consumption model under the background of delayed retirement, and derive formulas to calculate the steady-state output per labor, wage rate, and rate of capital return. Based on the model, we propose a formula to determine the optimal delayed retirement age, which can optimize the government's delaying retirement policy. Moreover, we provide theoretical demonstrations and perform numerical simulations about how delayed retirement ages affect key variables such as the agent's optimal consumption and steady-state output per labor in the context of deepening population aging, and further analyze how the Chinese government determines the optimal delayed retirement age. Results are as follows: Firstly, extending the delayed retirement age will reduce the agent's optimal youth consumption, but increase the agent's optimal old-age consumption, life-time consumption, and the total consumption of economy in the current period. Secondly, the aging population problem is affected by both changes in the birth rate and the survival probability. From 2020 to 2100, the former is constantly declining in China, while the latter is gradually rising. Although these two drivers have different influences on the optimal delayed retirement age, the influence of a higher survival probability is greater, so aging postpones the optimal delayed retirement age in China. Thirdly, the degree of population aging and the agent's labor productivity of the elderly are two main factors affecting the optimal delayed retirement age. Although both factors present an increasing trend from 2020 to 2100, they have opposite implications: the former dominates the latter until 2075 and increases the optimal delayed retirement age. On the other hand, the inhibitory effect of the latter gradually increases and eventually dominates the former from 2075. Fourthly, under the cross influence of the above two factors, the optimal delayed retirement age in China shows an inverted U-shaped trend of rising initially and then decreasing after reaching the peak in 2075. Fifthly, we estimate that if the delayed retirement policy is adopted from 2025, it is reasonable to set the average annual delayed retirement time to two to three months. Finally, we propose measures and suggestions to mitigate the possible negative impacts of delayed retirement.

Spatial Correlation Network Structure of Carbon Emission Efficiency in China’s Construction Industry and Its Formation Mechanism

In the context of “carbon peak, carbon neutrality”, it is important to explore the spatial correlation network of carbon emission efficiency in the construction industry and its formation mechanism to promote regional synergistic carbon emission reduction. This paper analyzes the spatial correlation network of carbon emission efficiency in China’s construction industry and its formation mechanism through the use of the global super-efficiency EBM model, social network analysis, and QAP model. The results show that (1) the national construction industry’s overall carbon emission efficiency is steadily increasing, with a spatial distribution pattern of “high in the east and low in the west”. (2) The spatial correlation network shows a “core edge” pattern. Provinces such as Jiangsu, Zhejiang, Shanghai, Tianjin, and Shandong are at the center of the network of carbon emission efficiency in the construction industry, playing the role of “intermediary” and “bridge”. At the same time, the spatial correlation network is divided into four plates: “bidirectional spillover plate”, “main inflow plate”, “main outflow plate”, and “agent plate”. (3) Geographical proximity, regional economic differences, and urbanization differences have significant positive effects on the formation of a spatial correlation network. At the same time, the industrial agglomeration gap has a significant negative impact on the formation of such a network, while energy-saving technology level and labor productivity differences do not show any significant effect.

Spatial Difference in Labor Productivity between Beijing and the Wider South East Region of England

Spatial Difference in Labor Productivity between Beijing and the Wider South East Region of England

Skilled Labor Productivity and Cross-Country Income Differences

This paper revisits the question of how allowing for imperfect substitution among workers with different skill levels affects the results of development accounting. We consider a range of models that nest the approaches in the literature and calibrate them to a common set of moments, including particularly evidence on the wage gains of migrants. We obtain two main results. First, human capital accounts for between one-half and three-fourths of cross-country income gaps. Second, human capital accounts for only modest variation in the relative productivity of skilled versus unskilled labor. (JEL E24, E25, J22, J23, J24, J31, J61)

On the Unequal Exchange in China’s Economic Partnership with Africa

ABSTRACT China’s economic engagement with Africa has expanded significantly in recent years. While some scholars highlight the engagement as critical for sustainable development in Africa, others argue that the rules of engagement tend to favor China and encourage unequal economic exchange. This article weighs into the discussion on unequal economic exchange. It uses international trade data from 1995 to 2015 to estimate the amount of unequal economic exchange in China’s trade with Africa. The estimate is based on a simple method that applies an exchange rate deviation factor to the trade flows between China and Africa, and further adjusts for the difference in labor productivity between the two trading regions. Results show significant unrecorded transfers of value from Africa to China, amounting to 2.5% of the total gross domestic product of African countries during the sample period. The article suggests several policy strategies to improve Chinese engagement with Africa and reinforce the continent’s progress towards sustainable development. In addition, the article provides a theoretical and empirical framework that can be useful for analyzing Africa’s trade engagement, not only with China, but with other regions of the world as well.

Impact of Labour Productivity Differences on Urban-Rural Integration Development and Its Spatial Effect: Evidence from a Spatial Durbin Model

Lewis’ dual economic structure theory holds that differences in labour productivity affect urban-rural integration development. Based on this theory, this paper analyses the spatial mechanism of labour productivity affecting the development of urban-rural integration. A multidimensional index system is constructed to estimate the degree of urban-rural integration development, and a spatial Durbin model is used to quantitatively analyse the spatial effect between the difference in labour productivity and the development of urban-rural integration. The results show that there is a significant positive spatial agglomeration phenomenon in urban-rural integration in the Yangtze River Economic Belt. The convergence of labour productivity will not only promote local urban-rural integration but also inhibit the urban-rural integration development of other administrative divisions, but it can still play a positive role in promoting the urban–rural integration development of the whole region. Finally, based on the above research conclusions, this paper puts forward three policy suggestions: optimizing the human capital structure, promoting rural industrial integration, and exploring the land reform system.

Family firms and the labor productivity controversy: A distributional analysis of varying labor productivity gaps

The question of whether family firms have a higher or lower labor productivity than nonfamily firms has led to a stream of inconsistent evidence. We address this polarized debate by arguing that the idiosyncratic workforce characteristics combined with the dual (socioemotional versus financial) wealth concerns of family firms may differ across the labor productivity distribution, which has a varying impact on the labor productivity differences of family firms versus nonfamily firms. Therefore, we use the method of unconditional quantile regression in our empirical testing on a rich data set containing firm-level data from a national survey of nearly 6,400 Chilean businesses, which allows us to account for the heterogeneous behavior of family firms throughout the entire labor productivity distribution rather than to focus on the difference in mean productivities merely. In line with our theoretical arguments, we find that family ownership generates a productivity advantage for firms located in the lower tail of the labor productivity distribution, whereas it exhibits a negative effect on labor productivity in the upper tail compared to their nonfamily counterparts. Our findings are robust to potential endogeneity of family ownership and offer a reconciling perspective on the contrasting labor-related agency and stewardship arguments dominating the labor productivity debate in family firms so far by showing which argument dominates depending on where the firm is located on the labor productivity distribution.

Application Research of Fuzzy Control Comprehensive Model in Agricultural Economic Management

Agriculture is the basic industry of the national economy, and the transformation of agricultural economic growth mode is of great significance to ensure the supply of agricultural products and improve the quality of agricultural products. Therefore, it is the only way to solve this problem to change the way of agricultural economic growth through scientific and technological investment, industrial structure adjustment, and other methods. Based on the fuzzy comprehensive evaluation method, this paper analyzes various factors of agricultural economic development and establishes a multilevel fuzzy comprehensive evaluation model of the development status of agricultural economic system. The stochastic frontier production function model of the fuzzy control comprehensive model is applied to decompose the agricultural labor productivity, and the counterfactual thinking and distribution method are used to analyze the influence of these factors on the evolution of provincial agricultural labor productivity differences. The value inequality decomposition method measures the contribution of each factor to the provincial agricultural labor productivity difference as well as the contribution of exogenous explanatory variables to the provincial agricultural technical efficiency difference. It is concluded that the relative contribution rate of nonagricultural activities to the difference in agricultural technical efficiency is the largest, and the average relative contribution rate reaches 74%. The improvement of agricultural labor productivity cannot rely solely on the increase in the input of agricultural material factors, but should rely on science and technology.

Agricultural composition and labor productivity

Labor productivity differences between developing and developed countries are much larger in agriculture than in non-agriculture. We show that differences in agricultural composition across countries explain a substantial part of these labor productivity differences. To this end, we group agricultural products into two sectors: capital-intensive and labor-intensive agriculture. As the economy develops and capital accumulates, the price of labor-intensive agricultural goods relative to capital-intensive agricultural goods increases. This price change drives a process of structural change that moves land and farmers to the capital-intensive sector, increasing labor productivity in agriculture. We illustrate this mechanism using a multisector growth model that generates transitional dynamics consistent with patterns of structural change observed in Brazil and also differences in agricultural composition and labor productivity consistent with cross-country data.

Оценка вклада агломерационного фактора в производительность труда в российских регионах

In the article on the basis of data for 2 042 municipal districts of 70 subjects of the Russian Federation, not specializing in mining, an assessment of the impact of the agglomeration effect on differences in labor productivity in Russian regions was made. The authors come to the conclusion that the contribution of the agglomeration effect in the explanation of interregional differences in labor productivity is ambiguous. The estimates obtained indicate the absence of a positive effect of the density of economic activity in space on labor productivity in the regions. At the same time, the effect of negative externalities that manifest themselves in the form of overpopulation effects in the regions of the western part of Russia is less pronounced than in the eastern regions

Модель економічного аналізу міжнародної торгівлі України та ЄС

The equations of gravity have undergone a significant evolution since their initial application in economics. The conception is perceived as originating in physics. However, international trade studies allow to a more thorough analysis of the instances of gravity equations application. The conception of gravity, initially underestimated by economists and devoid of solid theoretical foundations, was rarely used in empirical research. However, at present this conception has become the main instrument of analysis. First of all, this is determined by its empirical utility, ability to take into account many factors that shape trade, and, as a result, flexibility of its application. Over the past few years, the use of the conception of gravity has led to the conclusion that economists are finding more and more accurate methods for evaluating econometric models and taking into account increasingly complex factors. As a result, they go beyond purely economic factors that influence the intensity of trade relations between countries. It is worth noting that the conceptions formulated in early theories of trade, such as absolute advantage, comparative advantage, proportions of the provision of factors of production, and many others are directed towards studying the nature, causes and consequences of international trade. The so-called basis for international trade was seen alternately in various factors: differences in labor productivity, different proportions in the provision of factors of production, the effect of scale, the different position of countries on the so-called ladder of technological progress, etc. Some theories see the reasons for trade in differences between countries, others (for example, intra-industry trade) – in similarities. An important topic is also the role of entities operating with foreign capital in creating the trade flows.

The interplay of labour, land, intermediate consumption and output: a decomposition of the agricultural labour productivity for the Baltic States

This article proposes a decomposition approach for the agricultural labour productivity change that takes into account the land-to-labour ratio, intermediate consumption intensity and intermediate consumption productivity. The case of the three Baltic States (Estonia, Latvia, Lithuania) is considered which is interesting in the light of the European Union (E.U.) expansion and the structural change taking place in those countries. In addition, Poland, Germany and Denmark are included in the analysis as benchmark countries. To quantify the drivers of the agricultural labour change in the countries considered, the Index Decomposition Analysis (I.D.A.) is applied. The analysis proceeds in two directions: first, the cumulative change in the agricultural labour productivity over 1998–2018 is decomposed for each country under analysis; second, differences in the agricultural labour productivity for each country vis-à-vis Denmark (the highest productivity country) are decomposed. The results offer important policy implications as the intermediate consumption intensity appears as the critical factor that needs to be addressed via the support payments.

International diffusion of knowledge labor productivity and catching up between North and South

Most economists view technological differences as an important factor of disparity in productivity and growth gap across countries and an important obstacle of convergence between them. By following the models of Nelson and Phelps (1966) and that of Barro and Sala-i- Martin (1997), we develop two theoretical models to study the effects of the international diffusion of knowledge on labor productivity differences and catching up between northern and southern countries. The main results are: i) The productivity differences between northern and southern countries depend on the knowledge accumulation rate differences (innovation or imitation) and on the extent of specialization differences. ii) Catching up is an endogenous process and its speed depends on the rate of knowledge accumulation in the northern countries, on investment in human capital and on learning process in the southern countries. iii) The southern countries, if they catch up with the northern countries, cannot exceed them to be future leaders.

Inequality and growth in the twenty‐first century

AbstractThis paper analyzes how economic growth can be caused by changes in the income distribution. Persson and Tabellini (1994, The American Economic Review, 84, 600‐621) argue that productivity‐induced income inequality leads to lower growth since distortionary taxes increase and harm capital accumulation. However, this prediction is often challenged empirically. This paper distinguishes between capital income inequality and inequality induced by differences in labor productivity. Greater capital income inequality leads to lower labor tax rates, leading to higher growth. Using data for OECD countries, subsequent growth is found to be positively related to capital income inequality, and negatively related to labor income inequality, as originally conjectured.

Comparisons between main and ratoon crops in resource use efficiencies, environmental impacts, and economic profits of rice ratooning system in central China

Rice production in China is constrained by excessive water consumption, labor shortage, large environmental footprint, and low economic profit. Rice ratooning is a promising practice to increase famers' profit with higher resource use efficiency and less environmental impact compared with other rice cropping systems. However, there is limited information on the differences in energy use efficiency, water and labor productivity, environmental footprint, and economic return between main crop (MC) and ratoon crop (RC) in this cropping system. This study was conducted to compare the system performance between the two crops of ratoon rice using on-farm survey data. Average grain yield was 8.40 and 4.55 t ha−1 for MC and RC, respectively. Although RC produced 45.9% lower grain yield, it had 57.3% less total energy input and 71.0% lower total production cost than MC, which resulted in a significantly higher energy use efficiency, net energy ratio, net economic return and benefit-to-cost ratio. Lower total energy input and production cost of RC was mainly attributed to the reduction in fertilizer application and labor input, respectively compared with MC. In addition, both labor and water productivity of RC was significantly higher than those of MC. Furthermore, the global warming potential (GWP) and yield-scaled GWP of RC was 59.3% and 23.4% lower than those of MC, respectively, due to lower agronomic inputs and GHGs emissions. Overall, our results suggested that RC had higher resource use efficiency, better economic performance, and less environment impact compared with MC.

Minimum Wage Policy: Is There Any Impact on Low Skilled Workers in Electrical and Electronics Companies in Malaysia?

Wage are the greatest pushing factor for many workers to work and positively relates to employee life satisfaction. Meanwhile, fringe benefits improve the skills and knowledge of workers and enhance the organization’s reputation. Minimum wage policies around the world uphold the principle to provide a basic living wage for their workers. Nevertheless, the impact of national minimum wage policy on Malaysian employees, in particular, was the least explored since enacted into law in 2012. This study examines the minimum- wage impact on low-level skilled workers in the electrical and electronics industry in Malaysia. Minimum wage can have an effect on labor productivity and fringe benefits, particularly training, allowances, and insurance, have become important research topics. As such, this research discusses the effect of minimum wages on labor productivity and fringe benefits of employees. A semi-structured survey questionnaire was distributed to 600 employees in electrical and electronics firms in Penang and Kulim Industrial Zones. Data from 432 questionnaires were quantitatively analyzed using Exploratory Data Analysis (EDA). The findings suggest that employers should make some adjustments in administering the wage scale due to the implementation of minimum wage national policy that has impacted firms’ costs and incomes. The results also found that the minimum wage affects labor productivity and wage differences among workers. Meanwhile, the minimum wage does not adversely affect the adjustments to the fringe benefits, except for the provision of training. This study recommends more strategic plans and negotiations between stakeholders on wage and fringe benefits that would warrant continuous positive effects for both workers and employers.