Observed Differences In Productivity Research Articles

Contribution of tree community structure to forest productivity across a thermal gradient in eastern Asia

Despite their fundamental importance the links between forest productivity, diversity and climate remain contentious. We consider whether variation in productivity across climates reflects adjustment among tree species and individuals, or changes in tree community structure. We analysed data from 60 plots of humid old-growth forests spanning mean annual temperatures (MAT) from 2.0 to 26.6 °C. Comparing forests at equivalent aboveground biomass (160 Mg C ha–1), tropical forests ≥24 °C MAT averaged more than double the aboveground woody productivity of forests <12 °C (3.7 ± 0.3 versus 1.6 ± 0.1 Mg C ha–1 yr–1). Nonetheless, species with similar standing biomass and maximum stature had similar productivity across plots regardless of temperature. We find that differences in the relative contribution of smaller- and larger-biomass species explained 86% of the observed productivity differences. Species-rich tropical forests are more productive than other forests due to the high relative productivity of many short-stature, small-biomass species.

The Double Burden of Being A Woman and Obese: Evidence from the Chilean Labor Market

This study analyzes the labor market dimension of a worldwide social concern: the growing level of obesity. Using detailed, individual information of Chilean workers, the study finds a strong evidence of a wage penalty for women as body size increases, whereas men seemingly enjoy a wage premium for being overweight. Several hypotheses are tested for explaining this finding and results suggest that the gender wage gap between obese and non-obese workers is not related to observed productivity differences, risk aversion, or health limitations. For women, the wage penalty is mostly explained by occupational crowding and the “beauty premium” in high-skilled occupations. Finally, this study outlines possible avenues that future research should address. HIGHLIGHTS Women are more likely to experience a weight penalty in labor markets than men. Heavier women earn less per hour than thinner coworkers in Chile. Overweight men experience a wage premium. Wage differences between obese and non-obese women cannot be explained by observable endowments. The wage penalty is larger in occupations requiring more social interactions.

Firm dispersion and total factor productivity: Are Norwegian salmon producers less efficient over time?

The Norwegian salmon farming sector has experienced an increase in industry concentration for the last 20 years attributed to agglomeration externalities and scale economies; big firms increase their size and market share while small firms remain operating at the minimum level. However, small firms have higher profitability ratios than their bigger counterparts, a fact that contradicts economic theory as less efficient firms (and less profitable) will not grow and eventually will disappear. This paper quantifies the role of idiosyncratic demand and distortions on observed productivity differences across Norwegian salmon producers from 2001 to 2016. By using a data set that measures directly firm-level quantities, prices and sales, it is possible to break down the sources of total factor productivity dispersion on technical inefficiency and firm fundamentals. The understanding of total factor productivity (TFP) dispersion is useful as micro-productivity changes can point out aggregate productivity movements that matter on industrial and macroeconomic policies.

Farm size and productivity growth in the United States Corn Belt

In recent decades, agricultural production in the U.S. has continued to shift to large-scale operations, raising concerns about the economic viability of small and midsized farms. To understand whether economies of size provided an incentive for the consolidation of production, the study estimates the total factor productivity (TFP) of five size classes of grain-producing farms in the U.S. Heartland (Corn Belt) region. Using quinquennial Agricultural Census data from 1982 to 2012 the study also compares TFP growth rates across farm sizes to gain insight into whether observed productivity differences are likely to persist. The finding of a strong positive relationship between farm size and TFP suggests that consolidation of production has contributed to recent aggregate productivity growth in the crop sector. The study estimates the extent to which sectoral productivity growth can be attributed to structural change versus other factors including technological change. The study also explores some tradeoffs associated with policies that raise the productivity of small versus large farms.

The Effect of Competition on the Demand for Skilled Labor: Matching with Externalities in the NBA

This paper studies a novel explanation for observed productivity differences among firms in the same industry. Competition is allowed to affect labor productivity, so that heterogeneity in competition affects the demand for skilled labor, leading to differences in firm performance. This mechanism is explored in the setting of professional basketball where heterogeneity in competition is easily measured. I develop and estimate a matching model with externalities, where the value of a match between a player and team depends on the entire allocation of matches. The results show that competition has a significant effect on hiring decisions, and leads to a clustering of talent among firms that are particularly strong rivals.

Impact of Heterogeneity in Task Environments on Individual Learning Curves

Learning by doing is one of the key mechanisms that influences capability development in firms. Recent research has shown that the manner in which individuals within organizations accumulate and learn from experience is a factor contributing to observed productivity differences across organizations. This paper makes a theoretical and an econometric contribution by (a) exploring whether individual learning is transferrable across work environments and (b) developing an econometric model that accounts for the fact that worker output and quality are simultaneously determined. Using this improved specification, we show that individual learning curves are significantly influenced by the context of work as well as the setting in which individual experience is acquired. We discuss implications for the understanding of learning curves and how these factors influence capability accumulation.

Do women react differently to incentives? Evidence from experimental data and payroll records

We consider the response to incentives as an explanation for observed productivity differences within a firm that paid its workers piece rates. We provide a framework within which the observed productivity differences can be decomposed into two parts: One due to differences in ability and the other due to differences in the response to incentives. We apply this decomposition to male and female workers from a tree-planting firm in British Columbia, Canada. Our evidence (both experimental and nonexperimental) suggests that there was no difference in the reaction to incentives between male and female planters. The productivity differential male planters enjoyed arose because of differences in ability, interpreted as strength in our application.

Skills, Workforce Characteristics and Firm-Level Productivity: Evidence from the Matched Abi/Employer Skills Survey

We construct firm-level data set with matched productivity and qualification data by linking the Annual Business Inquiry and Employer Skills Survey for England. We first examine the effect of workplace skills and other characteristics such as part-time status and gender on both productivity and wages in English firms. We also investigate how productivity-implied returns to worker characteristics compare with wage-implied returns, therefore providing information on how rents are distributed between employers and employees. We find that firms with a higher share of college-educated, full-time and male workers also tend to be more productive, with considerable variations across sectors. The only robust difference in implied returns follows from part-timers, who tend to work for firms that pay too low wages for the observed productivity differences. Second, we study the effect of local skills on productivity controlling for skills at the firm. We find a positive and robust association, which is consistent with positive human capital externalities.

Does Ownership Matter? Empirical Evidence from the German Wine Industry

SUMMARYThere is widespread belief among economists that the separation of ownership and control tends to reduce the performance of companies while competition tends to improve it. Irrespective of their theoretical appeal these assumptions have not been tested very often. Using an unbalanced panel of about 300 German wineries (compiled from four different editions of a highly respected and widely used wine guide), the paper shows that firms run by ‘managing directors’ produce higher quality and more expensive wines than otherwise identical owner‐managed firms. Since firms have identical production functions and due to the intense competition in the sector under consideration it is very likely that differences in human capital explain the observed productivity differences.

Profit Sharing in Portugal: Why Higher Productivity?

The paper studies some characteristics of Portuguese profit‐sharing (PS) firms based on a sample of 192 manufacturing firms. Some issues are examined that could help explain observed productivity differences such as the performance contingency of PS payments and the complementary or substitution nature of these payments regarding wages. The higher productivity found for PS firms seems to be more related to higher total remuneration in these firms than to the specific PS pay formula. The issues of why, how and by whom PS payments are determined could clarify the exact nature of our findings.

British and American Manufacturing Productivity: A Comparison and Interpretation.

This study is a comparison of postwar productivity data for 34 British and American manufacturing industries. It examines statistical relationships between observed productivity differences and other variables, interpreting the relative influence of these factors on productivity.