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on Efficiency and Productivity |
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Issue of 2022‒04‒25
thirteen papers chosen by |
| By: | Diane Coyle (Bennett Institute for Public Policy, University of Cambridge and The Productivity Institute); Jen-Chung Mei (Bennett Institute for Public Policy, University of Cambridge and The Productivity Institute) |
| Keywords: | Productivity, manufacturing, ICT, Decomposition |
| JEL: | O47 L16 L60 L86 |
| Date: | 2022–03 |
| URL: | http://d.repec.org/n?u=RePEc:anj:wpaper:018&r= |
| By: | Tovar Reanos, Miguel; Martinez-Cillero, Maria |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp711&r= |
| By: | Lindquist, Matthew J. (SOFI, Stockholm University); Sauermann, Jan (IFAU); Zenou, Yves (Monash University) |
| Abstract: | We study both endogenous and exogenous peer effects in worker productivity using an explicit network approach. We apply this method to data from an in-house call center of a multinational mobile network operator that include detailed information on individual performance. We find that a 10% increase in average co-worker current productivity increases worker productivity by 5.3%. A 10% increase in average co-worker permanent productivity decreases worker productivity by 3.2%. Older workers, low tenure workers, and low-permanent productivity workers respond the most to changes in co-worker productivity. These workers free ride in the presence of co-workers from the top quartile of the distribution of permanent productivity. Counterfactual exercises demonstrate how managers could mitigate the problem of free riding by re-shuffling workers into different co-worker networks. |
| Keywords: | peer effects, endogenous peer effects, exogenous peer effects, social networks, worker productivity |
| JEL: | J24 M50 |
| Date: | 2022–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15131&r= |
| By: | Görg, Holger (Kiel Institute for the World Economy); Mulyukova, Alina (Kiel Institute for the World Economy) |
| Abstract: | This paper exploits time and geographic variation in the adoption of Special Economic Zones in India to assess the direct and spillover effects of the program. We combine geocoded firm-level data and geocoded SEZs using a concentric ring approach, thus creating a novel dataset of firms with their assigned SEZ status. To overcome the selection bias we employ inverse probability weighting with time-varying covariates in a difference-in-differences frame-work. Our analysis yields that conditional on controlling for initial selection, SEZs induced no further productivity gains for within SEZ firms, on average. This is predominantly driven by relatively less productive firms, whereas more productive firms experienced significant productivity gains. However, SEZs created negative externalities for firms in the vicinity which attenuate with distance. Neighbouring domestic firms, large firms, manufacturing firms and non-importer firms are the main losers of the program. Evidence points at the diversion of inputs from non-SEZ to SEZ-firms as a potential mechanism. |
| Keywords: | firm performance, agglomerations, Special Economic Zones, India |
| JEL: | O18 O25 P25 R10 R58 R23 F21 F60 |
| Date: | 2022–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15123&r= |
| By: | Diane Coyle (Bennett Institute for Public Policy, University of Cambridge and The Productivity Institute) |
| Keywords: | Healthcare, Productivity, Covid-19, social infrastructure |
| Date: | 2022–02 |
| URL: | http://d.repec.org/n?u=RePEc:anj:wpaper:017&r= |
| By: | Coraggio, Luca (University of Naples Federico II); Pagano, Marco (University of Naples Federico II, and); Scognamiglio, Annalisa (University of Naples Federico II, and); Tåg, Joacim (Research Institute of Industrial Economics (IFN)) |
| Abstract: | Does the matching between workers and jobs help explain productivity differentials across firms? To address this question we develop a job-worker allocation quality measure (JAQ) by combining employer-employee administrative data with machine learning techniques. The proposed measure is positively and significantly associated with labor earnings over workers' careers. At firm level, it features a robust positive correlation with firm productivity, and with managerial turnover leading to an improvement in the quality and experience of management. JAQ can be constructed for any employer-employee data including workers' occupations, and used to explore the effect of corporate restructuring on workers' allocation and careers. |
| Keywords: | Jobs; Workers; Matching; Mismatch; Machine Learning; Productivity; Management |
| JEL: | D22 D23 D24 G34 J24 J31 J62 L22 L23 M12 M54 |
| Date: | 2022–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:1427&r= |
| By: | ANDRIAKOPOULOS, KONSTANTINOS; LADAS, AUGOUSTINOS; ANDRIAKOPOULOS, PANAGIOTIS |
| Abstract: | This paper contributes to the literature on leasing and bank efficiency by examining whether the cost efficiency of banks depends on the leasing that banks offer. Indeed, banks improve their situation when they offer products that might be close substitutes such as lease and loans. In addition, the presence of transaction costs offers more costumers to those banks that provide more products to their customers. Similarly, banks can create profit opportunities offering the asset of leasing in low price exploiting their negotiating power. Moreover, leasing can alleviate information asymmetries issues that arise during loan procedure. Using stochastic frontier analysis for a sample of commercial and savings banks in USA for the years 2010–2017, we find that leasing positively affects cost efficiency. Significant variations among type of bank and microeconomic conditions appear to be present. By considering all CAMEL (Capital Adequacy, Asset Quality, Management, Earnings, and Liquidity) parameters we notice that banks’ financial strength affects cost efficiency. Some policy implications are derived based on the empirical evidence supporting a more robust banking system can be created as banks offer leasing to their costumers instead bank loans reducing their credit risk that they face when they want to finance potential profitable investment projects. |
| Keywords: | C33; G21; G30 |
| JEL: | C33 G21 G30 |
| Date: | 2020–04–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:112645&r= |
| By: | Berthold Herrendorf; Richard Rogerson; Ákos Valentinyi |
| Abstract: | Moving labor from agriculture to manufacturing – “industrialization” – is often viewed as essential for the development of poor countries. We present new evidence on the channels through which industrialization can help poor countries close the productivity gap with rich countries. To achieve this, we leverage recent data releases by the Groningen Growth and Development Centre and build a new dataset of comparable labor productivity levels in agriculture and manufacturing for 64 mostly poor countries during 1990–2018. We find two key results: (i) cross-country labor productivity gaps in manufacturing are larger than in the aggregate and (ii) there is no tendency for manufacturing labor productivity to converge. While these results challenge the notion that expanding manufacturing employment is essential for the development of today’s poor countries, we also find that higher labor productivity growth in manufacturing is associated with higher labor productivity growth in the aggregate and in several key sectors. |
| JEL: | E24 O11 O14 O47 |
| Date: | 2022–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:29834&r= |
| By: | Guohua Feng; Jiti Gao; Bin Peng |
| Abstract: | Despite its paramount importance in the empirical growth literature, productivity convergence analysis has three issues that have yet to be addressed: (1) the hierarchical structure of industry-level datasets has little been fully explored; (2) industry-level technology heterogeneity has largely been ignored; and (3) crosssectional dependence has rarely been allowed for. This paper aims to address these three problems within a hierarchical panel data framework. We establish asymptotic properties for the proposed estimator, and apply the framework to a dataset of 23 manufacturing industries from a wide range of countries over the period 1963-2018. Our results show that both the manufacturing industry as a whole and individual manufacturing industries at the ISIC two-digit level exhibit strong conditional convergence in labour productivity, but not unconditional convergence. In addition, our results show that both global and industry-specific shocks are important in explaining the convergence behaviours of the manufacturing industries. |
| Keywords: | Convergence in manufacturing, cross-sectional dependence, growth regression, hierarchical model |
| JEL: | L60 O10 C23 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:msh:ebswps:2022-3&r= |
| By: | Gkouzos, Andreas |
| Abstract: | An input-oriented BCC model used to estimate the efficiency of basic economic branches in Greek regions at NUTS 2 level. The basic agriculture-forestry and fishery such as basic wholesale and retail trade, public administration and education were completely efficient in the most regions in 2017. On the other hand, the basic energy, transportation-storage and financial services displayed as completely efficient in the lowest number of regions. |
| Keywords: | economic base theory, basic economic branches, data envelopment analysis, Greek regions |
| JEL: | R0 R11 R12 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:112310&r= |
| By: | Sharpe, Andrew.; Mobasher Fard, Shahrzad. |
| Abstract: | Interest in the topic of well-being has burgeoned in recent years as the weaknesses of gross domestic product (GDP) per capita as a proxy for well- being have become more apparent. At the same time, the global economy has experienced a productivity slowdown. Since productivity growth is recognized as being by far the most important long-term source of sustainable gains in living standards, this development has implications for the future of living standards around the world. These two developments raise a number of issues related to the two-way linkages between productivity and well-being. First, does slower productivity growth constitute a significant threat to the betterment of the well-being of the world’s population, and, if so, by how much? Second, given that many indicators of well-being can have positive effects on productivity, should one aspect of any strategy to revive productivity growth be to focus on policies that improve well-being? The objective of this report is to survey the current state of research on the two-way linkages between productivity and well- being. |
| Keywords: | productivity, wellbeing, measurement |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ilo:ilowps:995172493102676&r= |
| By: | Brandily, Paul (Paris School of Economics); Hémet, Camille (Paris School of Economics); Malgouyres, Clément (Paris School of Economics) |
| Abstract: | We study job displacement in France. In the medium run, losses in firm-specific wage premium account for a substantial share of the overall cost of displacement. However, and despite the positive correlation between premium and productivity in the cross-section of firms, we find that workers are reemployed by high productivity, low labor share firms. The observed reallocation is therefore productivity-enhancing, yet costly for workers. We show that destination firms are less likely to conclude collective wage agreements and have lower participation rates at professional elections. Overall, our results point to a loss in bargaining power. |
| Keywords: | displaced workers, wage, reallocation, productivity, labor share |
| JEL: | J63 J31 |
| Date: | 2022–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15105&r= |
| By: | Balázs Égert; Christine de la Maisonneuve; David Turner |
| Abstract: | This paper provides a new measure of human capital using PISA and PIAAC surveys, and mean years of schooling. The new measure is a cohort-weighted average of past PISA scores (representing the quality of education) of the working age population and the corresponding mean years of schooling (representing the quantity of education). In contrast to the existing literature, the relative weights of each component are not imposed or calibrated but directly estimated. The paper finds that the elasticity of the stock of human capital with respect to the quality of education is three to four times larger than for the quantity of education. The new measure has a strong link to productivity with the potential for productivity gains being much greater from improvements in the quality than quantity component of human capital. The magnitude of these potential gains in MFP is comparable to a similarly standardised improvement in product market regulation, but the effects materialise with much longer lags. The paper demonstrates through the example of pre-primary education, how to simulate the impact of a particular reform to education policy on human capital and productivity. |
| Keywords: | education policies, human capital, OECD countries, PIAAC, PISA, productivity |
| JEL: | E24 I20 I25 I26 I28 |
| Date: | 2022–04–08 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1709-en&r= |