Differences In Labor Productivity Research Articles

Polycentric urban development and economic productivity in China: A multiscalar analysis

‘Urban polycentricity’ has become both a conceptual framework capturing emerging empirical realities and a spatial planning vision adopted in cities across Europe, USA, and, recently, also China. Despite the blossoming academic literature on polycentricity, only limited attempts have been made to explore whether and how polycentric urban development at different spatial scales affects the urban economy. In this paper, we empirically analyse whether and how urban polycentricity at different spatial scales in China is associated with urban economic performance. To this end, we extend the Cobb–Douglas production function and include measures of both inter-urban and intra-urban polycentricity to explain differences in labour productivity. The analysis links intra-urban monocentricity and inter-urban polycentricity with higher levels of labour productivity. In addition, the analysis points to an agglomeration spillover effect, as well as a potential weak positive interaction effect between intra- and inter-urban polycentricity. The paper concludes with policy implications for China’s spatial development.

Labor productivity and firm-level TFP with technology-specific production functions

We investigate the technological dimension of productivity, presenting an empirical methodology based on mixture models to disentangle the labor productivity differences associated with the firm's choice of technology (BTFP) and those related to the firm's ability to exploit the adopted technology (WTFP). The estimation endogenously determines the number of technologies (in the sector) and degree of technology sharing across firms (i.e., for each firm, the probability of using a given technology). By using comparable data for about 35,000 firms worldwide distributed across 22 (two-digit) sectors, we show BTFP to be at least as important as WTFP in explaining the labor productivity gaps across firms. Intra-sectoral and inter-sectoral heterogeneity is substantial and, even in sectors in which BTFP dominates on average, we find a considerable number of firms for which labor productivity is mostly determined by the ability to use the adopted technology. Hence, dissecting the labor productivity gaps is crucial to achieving more targeted innovation policies. The estimated number of technologies ranges from one (in only three industries) to five, being three in most cases. The suggested estimation strategy takes simultaneity into account. The BTFP measure is unaffected by omitted price bias. The presence of BTFP dispersion can be associated with the action of frictions preventing firms from switching to superior and more productive technologies. Eliminating BTFP does not eliminate misallocation.

Industrial Productivity Divergence and Input-Output Network Structures: Evidence from Japan 1973–2012

Since the early 1990s, there have been larger and increasing labor productivity differences across industries in Japan. More specifically, a clear pattern of sigma and beta divergence across industries is observed. To shed light on these stylized facts, we first evaluate the input–output structure of Japan through the lens of a community-detection algorithm from network theory. Results from this analysis suggest the existence of two input–output network structures: a densely-connected group of industries (a stationary community), whose members remain in it throughout the period; and a group of industries (a transitional community) whose members do not belong to this first group. Next, we re-evaluate the industrial divergence pattern of Japan in the context of each network structure. Results suggest that divergence is mostly driven by the transitional community. Interestingly, since 2007, a pattern of sigma convergence started to re-appear only in the stationary community. We conclude suggesting that industrial divergence and instability in community membership are not necessarily indicative of low productivity performance.

Country-specific preferences and employment rates in Europe

European countries exhibit significant differences in employment rates of adult males. Differences in average labor-leisure preferences, determined by cultural values that vary across countries, can be responsible for part of these differences. However, differences in labor market institutions, productivity, and skills of the labor force are also crucial factors and likely correlated with preferences. In this paper we use variation among first- and second-generation European migrants to isolate the effect of culturally determined labor-leisure preferences on individual employment rates. If migrants maintain some of their country of origin labor-leisure preferences as they move to different labor market conditions, we can separate the impact of these culturally determined preferences from the effect of other factors. We find that country-specific labor-leisure preferences explain about 24% of the top-bottom variation in employment rates across European countries.

Sectoral Differences in Labor Productivity Growth: Estimation and Modeling

This study provides some empirical evidence and quantification of differences in labor productivity among industries and countries. Using a recently available data base of value added per worker, country and time fixed effects are estimated first for various industries. Results are subsequently elaborated, to identify some time trends and sectoral profiles by country, which are in turn employed in a cluster analysis, summarizing some salient characteristics of industrial labor productivity in different economies. The empirical exercise is motivated by the possible employment of its findings in the construction of long-run economic growth scenarios, by means of Computable General Equilibrium (CGE) models. It is found that: (a) Manufacturing is normally the fastest growing sector and its performance is strongly correlated with the aggregate productivity growth; (b) differences in the rates of agricultural productivity gains are relatively minor; (c) slow-growing countries are characterized by slow-growing Services.

The Role of Information and Communications Technology (ICT) in Enhancing Service Sector Productivity in Palestine

This article discusses the productivity of the Information and Communication Technology (ICT) sector using cross-sectional data from 793 service firms in Palestine. The authors have examined the impact of ICT growth on service sector productivity in Palestine using a set of indicators for ICT including internet usage, e-commerce, networks, websites, and use of “smart” phones. They find that using ICT (mainly Internet) in commerce (e-commerce) is one of the most important levers of labor productivity among service firms. Service firms that are less ICT-intensive are less productive than more ICT-intensive firms; moreover, the use of mobile phones for services other than send-and-receive calls, highly improves the labor productivity of service firms. Conversely, using a website and computer network does not positively affect the labor productivity. Regarding geographical differences in labor productivity, the analysis shows that firms in Jerusalem are characterized by higher productivity than firms in the West Bank, while firms in Gaza have a lower productivity compared to firms in the West Bank.

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 cross-country differences in agricultural composition explain a substantial part of labor productivity differences. To this end, we group agricultural products into two sectors that are differentiated only by capital intensity. 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 shifts 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 other developing countries, and with cross-country differences in agricultural composition and labor productivity. Finally, we show that taxes and regulations that create a misallocation of inputs within agriculture also reduce the relative labor productivity.

Spatial Wage Gaps and Frictional Labor Markets

We develop a job-ladder model with labor reallocation across firms and space, which we design to leverage matched employer-employee data to study differences in wages and labor productivity across regions. We apply our framework to data from Germany: twenty-five years after the reunification, real wages in the East are still 26 percent lower than those in the West. We find that 60 percent of the wage gap is due to labor being paid a higher wage per efficiency unit in West Germany, and quantify three distinct barriers that prevent East Germans from migrating west to obtain a higher wage: migration costs, workers' preferences to live in their home region, and more frequent job opportunities received from home. Interpreting the data as a frictional labor market, we estimate that these spatial barriers to mobility are small, which implies that the spatial misallocation of workers between East and West Germany has at most moderate aggregate effects.

The Relationship of Investments and Subsidies to Labour Productivity in Agriculture in Poland between 2010 and 2015

Following the microeconomic producer theory as a framework, this paper studies the empirical relationship between investments and subsidies from the CAP and labour productivity on farms, thus also on whole agriculture sector. It refers to labour productivity as the basis of producers’ income and the investments affecting the capital endowment as a major source of productivity improvement. The aim of the article is to present analytical and empirical evidence of the positive relationship to labour productivity of the growth of investments as well as subsidies on investments. The multifactor ANOVA models with interactions are used as an applied research tool to assess the differences in labour productivity, for example by investments and subsidies on investments. The results obtained indirectly suggest that agricultural producers behave rationally as far as the relationship between investment and labour productivity is concerned.

Produktivitas dan Faktor-Faktor yang Berpengaruh Terhadap Produksi Usahatani Tomat (Solanum lycopersicum Mill) di Kabupaten Jember

The purpose of this study include: 1)measuring the level of farm productivity and comparing among the tomato business scale, and 2) to identify factors that influence the tomato farm production in Jember. This research has been conducted in Jember, covering five District of samples, namely: Ledokombo, Sumberjambe, Ajung, Panti and Umbulsari. The data used are primary data and secondary data. Primary data were obtained from interviews with tomato farmers are guided by a list of questions that had been developed previously. While the secondary data obtained from the literature and agencies associated with this research. Analysis of the data used include quantitative descriptive analysis and regression naturally assuming that the relationship between the independent variables (Xi) and dependent variable (Y) is a Cobb-Douglas production function. The final conclusion is that: 1) The average productivity of farming tomatoes in Jember district, which consists of land productivity amounted to 153.662 ku / ha, labor productivity of 4.906 Kg / JKP, and productivity costs by 0.00047 Kg/USD. Based strata land area, did not show any differences in labor productivity and costs and but on land productivity among business scale narrow and wide, showed a highly significant difference in the confidence level of 99%, and 2) the factors that affect significantly to namely the production of land, labor and seed, while the fertilizers, pesticides and pesticide effect no significant effect on farm production of tomatoes in Jember. Keywords: Productivity, Production, and comparisons between the scale of farming

Productivity Gap between Sectors and Double Duality in Labor Markets

Over the last decades, productivity in the tradable sector rose substantially, while in the non-tradable sector, output per worker has remained the same, despite a similar increase in human capital in both sectors. This paper shows that a double duality both in the production and the higher-education sectors as well as heterogeneous ability of individuals might explain the differences in labor productivity between tradable and non-tradable industries. The double duality in the economy enables a separation of individuals by their ability, and in consequence, human capital in both industries is different. The heterogeneity in human capital can explain that despite an increase in human capital in both sectors there is still a gap in productivity and in wage premium. In other words, the productivity gap between sectors is fueled by the double duality in labor markets, leading to heterogeneity in human capital. In consequence, there is a contrast between on one hand, more mobility across countries, and on the other hand, less mobility between sectors.

Patterns of labor productivity and income diversification – Empirical evidence from Uganda and Nigeria

The labor productivity gap and differentials within and between farm and non-farm sectors is the key to understanding household income diversification patterns. This study shows that the labor productivity gap between farm and non-farm sectors attenuates after controlling for labor intensity. Within agriculture, there are no productivity gaps between staple and high value crops. This provides some evidence of underemployment in agriculture and employment gaps between the farm and non-farm sectors. In addition, diversification into and within farm and non-farm sectors is positively correlated with labor productivity in the specific sector. Diversification into non-farm activities may, however, reduce farm labor productivity and requires policies that reduce such tradeoffs in the transformation process. In addition, the pathways linking income diversification and labor productivity are complex and non-linear. In Uganda, income diversification is higher among resource-poor households (with limited family labor, land, and livestock) in rural areas away from main roads or urban centers. In Nigeria, diversification is higher for male-headed households with productive assets (family labor and land) and in areas closer to markets and urban centers.

PRODUKTIVITAS DAN FAKTOR-FAKTOR YANG BERPENGARUH TERHADAP PRODUKSI USAHATANI TOMAT (SOLANUM LYCOPERSICUM MILL) DI KABUPATEN JEMBER

The purpose of this study include: 1) measuring the level of farm productivity and comparing among the tomato business scale, and 2) to identify factors that influence the tomato farm production in Jember. This research has been conducted in Jember, covering five District of samples, namely: Ledokombo, Sumberjambe, Ajung, Panti and Umbulsari. The data used are primary data and secondary data. Primary data were obtained from interviews with tomato farmers are guided by a list of questions that had been developed previously. While the secondary data obtained from the literature and agencies associated with this research. Analysis of the data used include quantitative descriptive analysis and regression naturally assuming that the relationship between the independent variables (Xi) and dependent variable (Y) is a Cobb-Douglas production function. The final conclusion is that: 1) The average productivity of farming tomatoes in Jember district, which consists of land productivity amounted to 153.662 ku / ha, labor productivity of 4.906 Kg / JKP, and productivity costs by 0.00047 Kg / USD. Based strata land area, did not show any differences in labor productivity and costs and but on land productivity among business scale narrow and wide, showed a highly significant difference in the confidence level of 99%, and 2) the factors that affect significantly to namely the production of land, labor and seed, while the fertilizers, pesticides and pesticide effect no significant effect on farm production of tomatoes in Jember.

Forecasting Labour Productivity in the European Union Member States: Is Labour Productivity Changing as Expected?

The aim of the article is to propose different ways of forecasting labour productivity developments by using different statistical forecasting methods and applying different approaches to the most appropriate statistical forecasting method selection. This article examines labour productivity in the European Union member states, measured per employee and per hour worked, in the period from 1990 to 2016. In the forecasting analysis, seven statistical forecasting methods are used to forecast labour productivity for each European Union member state separately and for the European Union as a whole. Overall, three approaches to determine the forecast values of labour productivity have been used in the analysis. The impact of each statistical forecasting method was determined by using the MSE approach. The results are suggesting that the differences in labour productivity between countries should be smaller. In the future research, the level of labour productivity convergence in the European Union should be investigated

How (not) to Estimate GDP at the Sub-State Level: The Usefulness of the Economic Census

An accurate estimation of GDP for sub-state divisions is needed for studies on the overall size and growth of smaller economies, assessment of the industrial composition by subdivisions, and the impact of economic policies, among other reasons. In this paper, I review two popular methods to infer GDP in counties, both of which rely heavily on payroll, without controlling for labor productivity differences between subdivisions. By considering labor productivity heterogeneity across counties, I propose a new methodology that appears to provide a better map of the GDP of counties. For forecasting, my approach uses payroll statistics, but to a lesser extent. The new method is tested with data from Puerto Rico, a suitable jurisdiction given its significant heterogeneity between counties. I am able to map changes in economic geography associated with changes in the state’s economic structure. Like many other jurisdictions, Puerto Rico has undergone a deindustrialization process that ended up concentrating GDP in one geographical cluster.

The Effect of Permanent Employment on Absenteeism: Evidence from Labor Reform in Spain

Restrictive employment protection legislation has been highlighted as a key reason for lower labor productivity in Europe compared to the United States. Evidence in the literature has shown robust effects of employment protection on effort, though the effects appear too small to generate marked cross-country differences in labor productivity. The authors revisit this issue using representative data of private-sector workers in Spain. A range of legislative changes aimed at reducing the incidence of temporary employment are used to estimate the effect of permanent employment on one aspect of effort, absenteeism. Results suggest that being employed on a permanent contract increases the probability of being absent from work due to sickness by approximately 5.3 percentage points and the time absent by approximately 0.30 of a day per week. These results suggest that cross-country differences in employment protection have the potential to have a substantial impact on labor productivity.

Why do Japanese women work so much less than Japanese men? A business cycle accounting approach

To investigate why female labor supply is lower than male labor supply in Japan, we extend the business cycle accounting approach of Chari et al. (2007, Econometrica, vol. 75, pp. 781–836). We first apply business cycle accounting with two labor types of supply to the Japanese economy and find that the difference between the male and female labor wedges has been decreasing. We then prove that our prototype model comprising male and female labor supply concurs with other detailed models that include frictions on female labor supply and that decompose the labor wedges by gender into these frictions. Based on the data, the frictions from the difference in labor productivity, home production, and discrimination are consistent with the female labor wedge from the prototype model. Moreover, we conduct a counterfactual experiment in which the female labor wedge is equal to the male wedge to estimate the welfare gains. The result shows that the welfare gains are approximately equal to a 1.44% increase in consumption.

Why Is Europe Falling Behind? Structural Transformation and Services' Productivity Differences between Europe and the U.S.

We explain labor productivity differences of the service sector between Europe and the U.S. through the labor allocation taking place within the service sector. We measure labor productivity using a multisector structural transformation model that decomposes services into 11 sub-sectors comparable across Europe and the U.S. We identify wholesale and retail trade as well as business services to be the two sectors responsible for most of the lack of catch-up in labor productivity between Europe and the U.S. We also investigate which institutional characteristics are associated with the different performances of sectoral productivity across sectors. We empirically explore our country-sector panel measures of labor productivity levels, and our results suggest that differences in taxation, pro-business attitudes, ICT diffusion and rates of innovation are disproportionally correlated with the productivity of wholesale, retail and business services relative to the rest of the sectors in the economy.

Employment and firm heterogeneity, capital allocation, and countercyclical labor market policies

Developing and emerging economies have large employment shares in micro and small firms, which are characterized by limited access to formal financing and high reliance on input credit. These economies implemented a host of countercyclical labor market policies amid the Global Financial Crisis (GFC), but labor market data limitations prevent detailed empirical assessments of the effectiveness of these policies. We develop a business cycle model with frictional labor markets consistent with the employment and firm structure of these economies and assess the aggregate impact of key countercyclical labor market policies implemented amid the GFC. Improving job intermediation for large firms is particularly effective in aiding recoveries. Policies targeting smaller firms yield limited aggregate benefits. Differences in labor productivity and sectoral contribution to employment and output across firm categories are key in explaining the response to policy.

Understanding the Global Dynamics of Sectoral Labor Productivity

This study provides some empirical evidence and quantification of differences in labor productivity among industries and countries. Using a recently available data base of value added per worker, country and time fixed effects are estimated first for various industries. Results are subsequently elaborated, to identify some time trends and sectoral profiles by country, which are in turn employed in a cluster analysis, summarizing some salient characteristics of industrial labor productivity in different economies.