Labor Productivity Research Articles

The international empirics of management

A country's national income broadly depends on the quantity and quality of workers and capital. But how well these factors are managed within and between firms may be a key determinant of a country's productivity and its GDP. Although social scientists have long studied the role of management practices in shaping business performance, their primary tool has been individual case studies. While useful for theory-building, such qualitative work is hard to scale and quantify. We present a large, scalable dataset measuring structured management practices at the business level across multiple countries. We measure practices related to performance monitoring, target-setting, and human resources. We document a set of key stylized facts, which we label "the international empirics of management". In all countries, firms with more structured practices tend to also have superior economic performance: they are larger in scale, are more profitable, have higher labor productivity and are more likely to export. This consistency was not obvious ex-ante, and being able to quantify these relationships is valuable. We also document significant variation in practices across and within countries, which is important in explaining differences in the wealth of nations. The positive relationship between firm size and structured management practices is stronger in countries with more open and free markets, suggesting that stronger competition may allow firms with more structured management practices to grow larger, thereby potentially raising aggregate national income.

The effects of environmental innovations on labor productivity: how does it pay to be green

ABSTRACT Due to growing environmental concerns, environmental innovations (EIs) have gained prominence in firms’ strategies. This study delves into the productivity effects of regulation-driven environmental innovations using data from four Finnish Community Innovation Survey (CIS) waves. Instrumental variable estimation controls for the endogeneity of voluntary and regulation-driven EIs in a novel way. Our results support the prior findings on the strong Porter hypothesis that environmental regulation improves performance. However, the results also hint at a delay before environmental innovations translate into higher productivity. We also find that regulation-driven EIs improve performance in services. Small firms do not benefit relatively less, although they are inclined to do fewer voluntary EIs. Environmental regulation may favor firms in the Nordic context due to firms being close to the industry frontier.

A methodology to assess indicators of technological development of the industry: The electronics industry case

Subject. The article deals with assessing the technological development of the industry. Objectives. The focus is on development and testing of a methodology for evaluating indicators of technological development of the industry. Methods. The study rests on general scientific principles and research methods, like abstraction, generalization of approaches to industry’s technological development assessment, analysis, synthesis, systematization, and generalization of obtained results. Results. The developed methodology includes five stages: (1) assessment of preconditions for technological level change; (2) analysis of intensity of modernization; (3) analysis of staff development, growth of labor productivity and remuneration level; (4) assessment of innovation activity; (5) analysis of consequences of changes in the technological level as an increase in value added, return on capital, and sustainable growth. Conclusions. I tested the methodology on data from a sample of electronic industry enterprises (OKVED 26 Manufacture of Computer, Electronic and Optical Products). Calculations show that there are evolutionary, but not large–scale changes. However, there are no signs of noticeable innovative development. At the same time, there are significant changes in individual companies, like PAO Element, controlled by State Corporation Rostec Group. The analysis of the company's consolidated financial statements showed a significant inflow of resources, an increase in investment and innovation activity, staff development, an increase in value added, return on capital, and accelerated growth.

Employee demographic diversity and firm performance

AbstractThis article examines the relationship between employee demographic diversity and firm performance measured by future stock returns for a large sample of US public companies. We use novel demographic data extracted from employees' online profiles and resumes and focus on three key aspects of employee demographic diversity: age, gender, and ethnicity. We find no evidence supportive of an outperformance associated with greater employee‐diverse companies, neither using portfolio‐sorting approaches nor cross‐sectional and panel regressions. We also find no significant associations between employee demographic diversity and ROE, gross profit, and labor productivity.

Strategic Directions for Strengthening Sustainability of Forestry Workforce

Today in many countries and regions, forestry sector deals with a considerable shortage of forestry workers and faces the serious challenge of ensuring a qualified and sustainable workforce. Current global processes and structural changes, such as emigration from rural areas, aging of the population, unfavorable age structure of existing employees, negative demographic trends (migrations, decline in birth rate, negative natural increase, etc.), lack of interest in the so-called 3D (dirty, dangerous and demeaning) jobs, low cost of labor and others, significantly contribute to such an adverse situation. Additionally, forestry work, especially wood harvesting, represents a very risky, professionally highly demanding and physically extremely intensive activity, which is regularly classified as one of the most dangerous occupations with a high proportion of serious injuries, fatalities and occupational diseases. For these reasons, the forestry profession is considered unattractive, and the job of a forestry worker undesirable. All of this makes finding the people interested in these jobs very difficult, and the task of ensuring the necessary workforce for all regular activities in sustainable forest management becomes very hard. In this paper, based on the surveys carried out in the Federation of Bosnia and Herzegovina (FB&H), i.e. evaluation of forestry workforce sustainability factors, and on the study of available strategic documents, policies and case studies, strategic directions aimed at strengthening the sustainability of forestry workforce were elaborated. The sustainability factors were observed in three categories related to: a) stronger recruiting in forestry, b) more successful retention of forestry workers, and c) higher work commitment of forestry workers. Established rankings, together with other findings, were used to define four separate strategic directions: (1) Direct financial strategy, which emphasizes direct monetary payments to workers and is oriented towards labor productivity, (2) Indirect financial strategy, which focuses more on providing indirect material gains to workers and the quality of performed work, (3) Educational strategy, aimed at the education and training of workers, and (4) Technical-technological strategy, aimed at increasing the mechanization in forest operations thus reducing the demand for labor. The paper elaborates the basic starting points and main characteristics (priorities, measures and activities, stakeholders, responsible authorities, etc.) of each strategic direction considering the possibility and conditions of their implementation in national forestry sector. The objective of the paper is to raise the required awareness of the forestry workforce issues, its position and status, and also to provide foundations for enhancing the attractiveness of forestry work and improving the overall sustainability of the forestry workforce. The results of the study point out the critical issues and provide valuable insights that can help in formulating effective policies and strategies for the future.

Assessment of the impact of Long COVID on labour market participation and potential economic effects in the EU

Abstract This paper estimates the economic cost of long COVID through its direct impacts on the labour market. The direct implications of long COVID for affected individuals concern their capacity to work, and their productivity at work. Some individuals might continue to work, but at a lower productivity level, some might reduce their hours worked, including as a result of temporary absences, and some might stop working at all. To the best of our knowledge, so far, no study has explicitly addressed the impact of long COVID on the EU labour market. The present paper provides a tentative assessment using available estimates from surveys, clinical follow-up studies and model simulations of the prevalence of long COVID. This tentative approach yields an estimated negative impact on labour supply of 0.2-0.3% in 2021 and 0.3-0.5% in 2022. In person-equivalents, this means long COVID would have reduced labour supply by 364,000-663,000 in 2021 and by 621,000-1,112,000 in 2022, combining the effect of lower productivity, higher sick leaves, lower hours, and increased unemployment or inactivity. The lower bound of this range is close to a recent estimate put forward for the US (Abraham & Rendell, 2023). Available labour market data suggest a mixed picture when it comes to the impact of long COVID. Overall, the possible role of long COVID in the rising trend in sick leave, disability and activity-limiting health factors, warrants careful monitoring going forward, due to its potential impact on labour supply and labour productivity, and on public finances through increased social benefits, pensions, health care and long-term care expenditure.

Fiscal Policy, International Spillovers, and Endogenous Productivity

AbstractThe paper presents empirical evidence on the international effects of U.S. fiscal policy from structural vector autoregressions identified through external instruments in a panel setting for the G7 countries. An exogenous increase in U.S. government spending is estimated to produce sizable positive responses of output and consumption in the rest of the G7 countries, both about half as large as their domestic U.S. counterparts, while strongly depreciating the U.S. terms of trade and lowering the U.S. trade balance and short‐run real interest rates. Moreover, fiscal shocks are estimated to have a strongly positive impact on hourly labor productivity in the private sector. We solve a two‐country New Keynesian model in closed form and show that a low cost elasticity of varying technology utilization can simultaneously explain the positive productivity, consumption, and international spillover effects as well as the real depreciation resulting from expansionary U.S. government spending shocks.

Prevalence and treatment of chronic musculoskeletal pain focused on service gaps: a comparative analysis by age group and body part.

Occupational health, grounded in occupational medicine, aims to enhance the well-being and labor productivity of the working population. Within this realm, there has been growing concern over the increasing instances of labor loss due to diminished physical capacity and the rise in musculoskeletal disorders. Chronic pain is also associated with musculoskeletal disorders. Another pressing issue related to chronic musculoskeletal pain was needed assistance services are underutilized, is referred to as a "service gap". Understanding trends based on age and affected regions of the body is indispensable for developing strategies to address chronic musculoskeletal pain in workers. This study aimed to elucidate age-specific trends in the prevalence and number of pain sites in chronic musculoskeletal pain as well as the patterns of treatment during chronic musculoskeletal pain, categorized by age and affected site. This study was conducted in December 2022 in contract to Cross Marketing Inc. The survey began on December 12, 2022 and ended on December 15, 2022. An online survey was administered to 1,946 participants (973 women and 973 men), and responses were collected, ensuring a roughly equal distribution of samples among men and women across six age groups ranging from their 20 to 70 s. The survey inquired about the presence of chronic pain in each of the eight body parts and the adoption of five different treatments when experiencing pain. Statistical analysis was performed using the chi-square test, with the measurement data categorized by age group and body part. The results indicated a significantly higher prevalence of chronic pain at three or more sites among individuals in their 30 s: the prevalence of pain at each of the eight body sites varied with age. Approximately half of the participants did not engage in specific treatments during episodes of chronic pain. The presence or absence of treatment showed no significant differences according to affected site or age group. This study revealed age- and body part-related relationships with chronic musculoskeletal pain in middle-aged patients and highlighted healthcare service gaps in its management in Japan.

Impact of components of compensation on labours job satisfaction in the garments industry of Bangladesh

ABSTRACT The readymade garments (RMG) industry is a major driver of economic growth and poverty reduction in Bangladesh. It accounts for more than three-quarters of export earnings, contributes roughly 10 percent of GDP, and employs over 4 million people, the majority of whom are women, in approximately 5000 factories. The industry has faced several problems. High labour turnover is one of them, as it harms business performance and labour productivity. This study was carried out to determine various components of compensation and how they affected labourers’ degree of job satisfaction. Simple random sampling has been used to collect primary sources of data. The sample size is comprised of 151 labourers from the various garment factories in Bangladesh. This study revealed that labourers are more satisfied with their benefits Packages. In light of the higher costs associated with the inflation index, the average yearly wage or payment should be raised for compensation compared to the previous years. Furthermore, the Wage Board should periodically review workers’ basic pay and benefits to reflect changes in the country’s economic landscape. Based on the study’s findings, it is recommended that the pay structure and administration for RMG workers remain the same.

Trade and inequality in an overlapping generations model with capital accumulation

AbstractWe study the lifecycle aspect of within‐country inequality that stems from capital and labor services supplied by individuals. Our environment is a combination of a multicountry trade model and an overlapping generations model with production and capital accumulation. Trade liberalization increases the measured total factor productivity in each country, which increases the marginal product of capital and incentivizes capital accumulation. Higher capital stock and higher measured productivity raise the marginal product of labor and, hence, wages. Inequality, measured by the ratio of old agents' income to young agents' income, evolves over time due to capital accumulation during the transition from autarky to an open‐economy world. Immediately after liberalization, inequality increases. Over time, capital accumulates at a diminishing rate and inequality declines.

Prediction of the Effectiveness of Deferred Retirement in the Labor Market Performance in China

Abstract: The analytical document touching upon the prospects of how delaying retirement affects labor market ability in China reveals some crucial information about the implications of the retirement age policy modifications. This test may indicate that the retirement age raise would be a huge factor in China's labor market status, such as employment level and national pension funds. Apart from this, the paper is a reminder for the authorities to have a broad policy discussion on diverse fiscal consequences that different retirement age policies may cause like wage inflexibility, disposable labor issues, and the aging population. These results demonstrate that the simulation should be considered for its interplay with individuals' lives as well as for the macro economy. To scrutinize the efficacy of postponing retirement within China's employment market performance, it's critical to deploy some economic theories. The first method involves the insights from both the Beveridge curve and job creation curve to dissect the nuances of job turnover rates, opportunities for finding new jobs, and their influence on unemployment figures. Delving deeper into pension fund ramifications necessitates assessing the shift from Defined Contribution (DC) schemes towards Defined Benefit (DB) plans, while also taking stock of how dependency ratios come into play. Moreover, gauging effects on incremental labor productivity alongside capital-to-labor ratio calls for an expansive view that considers changes across various industrial sectors and their broader consequences on the labor market as a whole.

What counts as productive? Redefining ‘producers’ in economic discourse, 1890–1960

In this paper, we analyse economic discourse in debates over the production boundary, asking how the boundaries around economic categories change over time. Using a sample of economic textbooks from the late nineteenth to mid-twentieth century we analyse the evolution of the category of productive labour, finding that in the mid-twentieth century economists came to cohere around a conceptualization of productive activity that framed productive labour as any utility that was paid for on a market. Central to this outcome was the development of national accounting statistics that economists came to adopt in their analytical toolkit, which rendered invisible unpaid labour activities. Through this case we can see that statistical representations of the economy can redefine theoretical concepts and redraw the boundaries around economic categories, in this case transforming the boundary of productive labour into that of paid labour.

An empirical study of feature extraction for Hubei folk art of carved paper-cutting.

Excellent traditional culture is the root and soul of a nation, which is the carrier of historical precipitation and continuous development. In this aspect, Hubei folk art of carved paper-cutting has important cultural value and historical significance in the composition of Chinese traditional culture, which is a national intangible cultural heritage under key protection and urgently needs to be carried forward. This paper carried out an empirical study using the survey and comparative analysis methods on the feature extraction for Hubei folk art of carved paper-cutting. Through investigation and comparative analysis of vast artworks of Hubei carved paper-cutting, the classics are selected as the representative to extract the regional characteristics, the artistic values, and the composition and modelling methods. Results indicate that the common features exist on the artistic values in beautification of life and education, the composition principles of central-based, symmetry, balanced or conformal, and the modelling techniques using Yin and Yang carving, unobstructive perspective, distortion and exaggeration. However, the regional features in cultural expression, folklore communication, modelling skills are apparent and strong interlinked with the regional historical development in social activities, labor productivity and surrounding environment. This study provides a multi-dimensional perspective for the modern inheritance and development of traditional Hubei artworks of carved paper-cutting with specified characteristics.

Econometric analysis of factors influencing export performance of soybean (Glycine max) production in NIGERIA: An auto-regressive distributive lag (ARDL) approach

This study presents an econometric analysis of factors influencing the export performance of soybean (Glycine max) production in Nigeria using an auto-regressive distributive lag (ARDL) approach. The study used a secondary data covering the period from 2011 to 2022. The used data were collected from CBN (Central Bank of Nigeria), NBS (National Bureau of Statistics), FAO (Food and Agriculture Organization), and the General Household Survey-Panel (GHS-P) in conjunction with the Federal Ministry of Agriculture and Rural Development, and the World Bank publication. The data analysis included descriptive statistics, Augmented Dickey-Fuller (ADF) unit root test, Bound test, ARDL, and principal component model. The result of the ADF unit root test showed that the trade openness, consumer price index, exchange rate, population growth, world trade in oil seeds, agricultural labor, and soybean production were stationary at first difference I (1), while agricultural machinery was stationary at level I (0). The results of ARDL method showed that the consumer price index, population growth rate, world trade in oil seeds, agricultural labor, and agricultural machinery were significant factors influencing export performance of soybean in Nigeria. The trade openness and exchange rate were not different significantly from zero. The trade openness could not expand market access due to non-competitiveness of the Nigerian’s soybean. The exchange rate has lost its role with respect to soybean seed partners in international trade. The policies that would encourage exportation of this crop should be pursued by provision of storage facilities, granting of tax holidays, long term export credit at concessionary interest rate to exporters, and research activities towards improving the quality of produced agricultural products. Keywords: Export Performance, Augmented Dickey-Fuller, Auto-Regressive Distributive Lag, Soybean Production, Nigeria

Демографический спад и экономический рост: анализ причин и успешных решений в мировой практике

The article examines the impact of the demographic recession on economic growth, with an emphasis on the experience of foreign countries. In the face of an aging population and a shrinking workforce, many states are grappling with the challenges of sustaining stable economic development. The author analyzes examples from various global economies, exploring strategies employed to mitigate demographic changes, including stimulating innovation, increasing labor productivity, utilization of migration policy resources, and human capital development. Particular attention is paid to developed economies, where demographic issues most acutely affect long-term economic prospects. The author concludes that successful solutions to demographic challenges can be achieved through the implementation of a comprehensive approach and active collaboration among government entities, businesses, and society at large.

Inward FDI and regional performance in Europe after the Great Recession

Abstract This paper looks at inward foreign direct investment (FDI) and regional labour productivity in the aftermath of the Great Recession, exploring two FDI-induced effects. The first effect is linked with a capacity of FDI per se to trigger short-term productivity gains in response to a global shock. The second effect is associated with the degree of industrial diversification of these investment flows. The results suggest that it is not the amount of foreign investment received per se that matters for productivity recovery but its composition. A low degree of FDI diversification helped regions to gain productivity after the shock. The effect is stronger in regions with an industrial profile concentrated in a limited number of sectors, particularly in services. FDI can support regional recovery, but in the short run, it does so by matching and reinforcing existing regional specialisation profiles and to the benefit of services-oriented regions.

Increasing labour productivity by providing innovative activities in when repair and service sector in livestock industry

At present, the Russian Federation and the Republic of Belarus are significantly behind the developed countries in terms of labor productivity and the share of domestic companies implementing technological innovations in the main sectors of the economy (especially in agriculture). One of the significant factors of this lag is the underestimation in past years of the promising potential of various innovative technologies and, as a consequence the very limited and slow implementation of breakthrough innovations in the most signifi cant sectors of the domestic economy. The decisive turn of the state economic policy of neighboring states in the area of deep technological transformation of all sectors of the economy is aimed at an innovative breakthrough and reaching advanced growth rates in the technological and economic development of fraternal countries. However, along with the introduction of the latest technologies the creation of completely new modern high-tech industries, which will require colossal fi nancial investments, the task of comprehensively and thoroughly exploring internal production reserves, searching for new forms and methods of improving the effi ciency of labour organization at existing enterprises, which will also bring a noticeable economic effect, remains relevant. This article describes in sufficient detail practical activities to improve and streamline accounting, planning, certifi cation, rationalization of workplaces of animal husbandry technical service organizations under the current conditions of the developing market. The results of the studies show that certifi cation and rationalization of workplaces are eff ective tools in fi nding internal production reserves to improve the use of labour resources, fi xed production assets, promotes the replacement of obsolete equipment, improves the relationship between workplaces, improves working conditions, and optimally balances the need for labour with the number of existing workplaces. This will significantly increase the overall efficiency of activities and competitiveness of service enterprises in the fi eld of animal husbandry.

FORCED INTERNAL DISPLACEMENT OF THE UKRAINIAN POPULATION: RISKS RAISED BY WAR

The large-scale war forced millions of Ukrainians to leave their homes in search of safety. The mass displacement of the population led to an increase in the level of uncertainty and raised risks for both individuals and the whole of society. This article aims to assess the scale of internal migration in Ukraine during the war and to investigate the impact of this phenomenon on the quantitative and qualitative characteristics of the labor potential and the possibilities of its use. Our assessment of the number of internally displaced persons (IDPs), and our examination of the state of their adaptation and integration in the new territories of residence are based on administrative data about the registration of citizens as IDPs provided by social services as well as the surveys and research findings by international organizations and domestic sociological institutions. We present an overview of individual challenges and risks raised by the forced displacement of the population, and highlight the specific features of their manifestation. In particular, we single out an increase in the demographic burden, a decrease in the number of people of reproductive age, a reduction in the number of jobs, an increase in the burden on the budget, a drop in labor productivity, a loss or reduction in the income of a large part of the population, a limit of access to quality social services, as well as unemployment, deterioration of the quality of employment, increased social vulnerability, and weakening of social cohesion. Risks increase the probability of negative changes that lead to uncertainty, deterioration of the demographic situation, weakening of the stability of the economy, decline in the level and quality of life of the population, deepening of social inequality, growth of social tension, decline in the consumption capacity of the population, complete or partial loss of social ties and jobs. We offer recommendations regarding priorities and specific measures of the national state policy aimed at avoiding risks and minimizing their possible consequences. The implementation of this policy should be focused on establishing legal, economic, and institutional frameworks for easing tensions in the areas of material security and employment, improving the demographic situation as well as the quality and availability of social services, and improving living conditions.

Impacts of Indoor Air Quality on Working‐Age Populations' Subjective Well‐Being: Evidence From China Labor Dynamics Survey

ABSTRACTOutdoor air pollution can affect physical labor productivity and mental health, but it remains to be studied how indoor air quality (IAQ) exposure affects working‐age populations' subjective well‐being and physical health. Here, the first evidence of a link between IAQ and the subjective well‐being of working‐age populations has been provided using the dataset from a longitudinal survey in China. Using household ventilation as an instrument variable (IV) of IAQ revealed that IAQ improvements increased working‐age populations' subjective well‐being and life satisfaction by significantly affecting their physical health. Our analysis shows that an increase in IAQ by one standard deviation improves working‐age populations' subjective well‐being by 0.041 standard deviations. The marginal willingness to pay for IAQ is approximately 98.09 CNY. Compared with outdoor air quality, the impact of IAQ on well‐being and life satisfaction is more conspicuous. The results are robust to a variety of alternative specifications. For developing countries, improving IAQ is a new channel toward enhancing life quality, with lower economic and social costs.

Indirect Cost Burden as an Emerging Issue of Foreign Employment in Developing Nations

Background: The current migration patterns and shifts present significant challenges, including widespread human rights abuses, exploitation of migrant laborers, high indirect costs due to expensive travel, limited affordable credit options, scarce job opportunities for low-skilled workers, and inadequate domestic migration policies. This study aims to identify the additional financial burdens faced by Nepalese migrant workers in Gulf countries. Methodology: A qualitative research design was used, with purposive sampling to select participants who had migrated to Gulf countries. In-depth interviews with 55 migrant laborers were conducted to gather data on cost burdens and employment conditions. Findings: Results showed that the indirect cost burden increased significantly after 2015 due to extended processing periods and technical procedures. Respondents generally preferred regulations before 2015. Despite legal changes like the "Free Visa: Free Ticket" policy reducing direct expenses, intermediaries and other indirect costs have offset this reduction, increasing the financial burden on migrant workers. Conclusion: The study provides valuable insights into Nepal's foreign employment complexities, urging more research and measures for migrant worker well-being. Findings reveal intermediaries exploiting workers by altering passport photos or obtaining counterfeit birth certificates. Additionally, 2% of surveyed workers migrated as young returnees before age 18. These insights are essential to empower recruitment agencies and improve their practices, ensuring safer, prompt, and more productive labor migration. Novelty: This study uncovers the hidden financial burdens Nepalese migrant workers face in Gulf countries. It highlights the offsetting effect of intermediaries on legal reforms like the "Free Visa: Free Ticket" policy. It offers new insights into labor exploitation and emphasizes better regulation and worker protection.