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on Efficiency and Productivity |
| By: | Christophe André; Peter Gal |
| Abstract: | This review takes stock of the large body of evidence on aggregate productivity growth, its structural drivers, and the role of a wide range of policies. It aims to synthesise evidence on how public policies can promote productivity through their impacts on both the incentives and the capabilities of businesses and workers, taking account of different specificities of firms at the frontier and below, and integrating complementarities across policy areas. It also identifies gaps in knowledge, thus offering potential directions for future work. |
| Keywords: | Economic policy, Efficiency frontier, Entrepreneurship, Firm Performance, Intangible capital, Investment, Productivity, Technological diffusion |
| JEL: | D24 E22 E24 E6 J24 L25 L26 L5 O31 O32 O33 O38 O47 |
| Date: | 2024–10–07 |
| URL: | https://d.repec.org/n?u=RePEc:oec:ecoaaa:1822-en |
| By: | Jyotsna Rosario (Assistant Professor, Vidyashilp University, Bangalore); K.R. Shanmugam ((Corresponding Author) Director and Professor, Madras School of Economics, Gandhi Mandapam Road, Chennai) |
| Abstract: | This study uses the generalized stochastic frontier approach to estimate the technical efficiency of Indian States in providing elementary education from 2009-10 to 2018-19. Mean efficiency was estimated at 85 percent and it varied between 67 percent to 97 percent. Considerable inter- state disparity is observed in elementary education outcome and 96 percent of the disparity is explained by inefficiency. Kerala is the most efficient State followed by Maharashtra and Himachal Pradesh. Arunachal Pradesh is the least efficient state, followed by Sikkim and Tripura. Efficiency estimates were observed to change across States over the study period. Proportion of government schools, rural population and Schedule caste and Schedule Tribe children are the major determinants of inefficiency. Finally, the study identifies best practices and helps in separating the resource poor States from the inefficient ones. The study is useful for designing public policy that would help in removing regional imbalances in elementary education outcome. |
| Keywords: | technical efficiency, public expenditure, elementary education outcome, stochastic frontier analysis, Ray frontier |
| JEL: | C14 D24 I21 I28 H52 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:mad:wpaper:2024-264 |
| By: | Mohrenweiser, Jens; Pfeifer, Christian |
| Abstract: | Empirical studies find that firms with employee representation have a higher productivity than firms without employee representation. The exact mechanisms for this consistent finding remain unclear, however. A frequent theoretical argument postulates that employee representation provides a safeguarding mechanism which improves justice perceptions of employees that in turn improves cooperation and performance. Using a German longitudinal linked employer-employee dataset, we show that employees in firms with a collective bargaining agreement have higher individual and shared justice perceptions. These higher justice perceptions contribute to the productivity premium of firms with collective agreement. In contrast, justice perceptions are not higher in firms with than in firms without a works council. |
| Keywords: | works councils, collective bargaining, organisational justice, firm performance |
| JEL: | J53 M54 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:glodps:1499 |
| By: | Giuseppe Berlingieri; Filippo Boeri; Danial Lashkari; Jonathan Vogel |
| Abstract: | We study capital-skill complementarity in a multi-sector framework featuring firm-specific, multi-factor production functions and allowing for firm-specific factor-price wedges. We characterize the elasticity of the skill premium to the price of capital equipment in terms of firm-level elasticities of substitution across factors, elasticities of substitution across firms and sectors, and factor intensities. Using French data, we provide credible identification of these firm-level elasticities. Combining these elements we offer the first identification of aggregate capital-skill complementarity that allows for arbitrary trends in the unobservable skill-bias of productivity at the firm, industry, and aggregate levels. We find an economically and statistically significant degree of aggregate capital-skill complementarity, but this force alone is insufficient to generate the full increase in the relative demand for high-skilled workers observed in the data. There is a substantial role for skill-augmenting technical change not embodied in capital equipment. |
| Keywords: | capital-skill complementarity, capital equipment, income inequality, skill premium, CRESH |
| Date: | 2024–09–25 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepdps:dp2037 |
| By: | Giuseppe Berlingieri; Filippo Boeri; Danial Lashkari; Jonathan Vogel |
| Abstract: | We study capital-skill complementarity in a multi-sector framework featuring firm-specific, multi-factor production functions and allowing for firm-specific factor-price wedges. We characterize the elasticity of the skill premium to the price of capital equipment in terms of firm-level elasticities of substitution across factors, elasticities of substitution across firms and sectors, and factor intensities. Using French data, we provide credible identification of these firm-level elasticities. Combining these elements we offer the first identification of aggregate capital-skill complementarity that allows for arbitrary trends in the unobservable skill-bias of productivity at the firm, industry, and aggregate levels. We find an economically and statistically significant degree of aggregate capital-skill complementarity, but this force alone is insufficient to generate the full increase in the relative demand for high-skilled workers observed in the data. There is a substantial role for skill-augmenting technical change not embodied in capital equipment. |
| JEL: | E10 E23 E25 J30 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33000 |
| By: | Fabiano, Gianluca; Bustamante, Juana Paola; Codjia, Laurence; Siyam, Amani; Zurn, Pascal |
| Abstract: | Introduction: The World Health Report 2006 defined 'availability', 'competence', 'responsiveness' and 'productivity' as the key dimensions of the health workforce (HWF) performance framework. Since then, new goals have been set to address population health needs by optimizing HWF performance and quality. The aim of this scoping review is to identify aspects of HWF performance dimensions that have emerged since the 2006 publication. Methods: A scoping review of the literature was performed to establish the knowledge base on HWF performance via the latest available evidence. The web search was conducted on the Science and MEDLINE databases, with Scholar citations from the World Health Report 2006. Results: The literature reveals new thematic areas in HWF performance that were not explicit in the 2006 framework, eg the role of retention and recruitment policies on HWF availability and broadening competence by incorporating HW cultural background, attitudes and values alongside technical skills. Concepts related to HWF responsiveness have expanded to include job quality and work environment. A shift in productivity emphasises the role of technologies in enhancing clinical practice and overall system efficiency. Last, recurring aspects of performance were related to pay schemes and such contextual factors as the role of communities and regulatory frameworks. Conclusions: This review lays the groundwork for a revised perspective on HWF performance, transitioning from separate dimensions to a more integrated approach. It highlights the importance of expanding the availability dimension to emphasise the role of personal and career development and alignment with individual values. Knowledge, technical skills, attitudes, behaviours, beliefs and cultural background all influence competence. Responsiveness is seen through a lens valuing health worker well-being. Conceptually, productivity is broadened to reflect a more nuanced understanding of efficiency, recognizing the role of technology, how work environment and teams impact performance, and the significance of remuneration, including financial and non-financial incentives and other contextual factors. |
| Keywords: | performance, productivity, retention, health workforce, health |
| JEL: | I18 J08 J24 J24 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:glodps:1492 |
| By: | Kamel Dridi (Central Bank of Tunisia) |
| Abstract: | This study estimated Tunisia's potential growth with a Cobb-Douglas production function using an unobservable component model within structural changes context for the period 1989–2023. It investigated the major shocks' effects on the potential growth and its components. In contrast with most studies, we employed the Beveridge Curve to deduce the natural unemployment rate. In order to obtain a more realistic labor trend. We developed a methodology with which we created an indicator of working hours that considers a representative distribution of employment, in particular by sector, location, and gender. We performed the study in an uncertain environment. Structural changes have an important impact on the major macroeconomic trends. We manipulated these changes using a variety of econometric time series techniques. We performed the Bai-Perron test to detect slight shifts. The results show that for the last 40 years, Tunesia has not been able to maintain high potential production growth rates. The country could not halt the significant deceleration of potential output that began in the 2010s or avoid the negative potential growth differentials by 2020–23. Total factor productivity was insufficient to avoid a permanent slowdown that had become more severe with each shock. Additionally, labor declined in response to decelerating demographic trends and persistent structural unemployment. These issues may remain significant in the future. |
| Keywords: | Potential Growth; Production Function; Unobserved Components Model; structural changes; shocks |
| JEL: | E22 E23 E24 E27 C82 |
| Date: | 2024–09–26 |
| URL: | https://d.repec.org/n?u=RePEc:gii:giihei:heidwp21-2024 |
| By: | Tom Broekel; Torben Klarl; ; ; |
| Abstract: | Innovations are widely accepted as fundamental drivers of economic growth by increasing productivity and creating new markets. However, empirical evidence on the long-term relationship between technological progress and economic growth remains scarce, with few studies considering shifts in technologies’ fundamental properties, such as their degree of complexity. Yet, higher levels of complexity are argued to increase technologies’ economic potential, and consequently, ignoring this dimension of technologies provides an incomplete picture of innovations’ growth effects. We address this research gap by exploring the relationship between economic growth and technological complexity over more than 170 years in the United States (US). Utilizing patent data, the concept of the complexity frontier, and partial wavelet analysis, we find that economic growth has not been driven by patented innovation and technological complexity for most of this period. However, since the beginning of the ICT revolution in the 1990s, it has significantly contributed to GDP growth. |
| Keywords: | Innovation, Economic Growth, Technological Complexity, USA, Complexity Frontier, Wavelt Analysis |
| JEL: | O30 O47 N10 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:egu:wpaper:2427 |
| By: | Laurent Loic Yves Bossavie; Erkan Duman; Aysenur Acar Erdogan; Mattia Makovec; Sirma Demir Seker |
| Abstract: | The central hypothesis of this research is that there is a strong, positive correlation between good management practices and firm performance, for which we find strong evidence in a survey on management practices of Turkish manufacturing firms. To better understand this relationship, we investigated the drivers of firm heterogeneity in management practices. We find that product market competition and firm-level factors such as size, multinational status, work effort in the workforce, the level of managerial hierarchy, and ownership are significant determinants of management practices. We also find that family ownership and management are significant deterrents to good management practices and are strongly associated with declines in firm performance. Through this study, we also explored whether the adoption of better management practices comes at the expense of a good work-life balance. In this regard, we find that better-managed firms, in addition to attaining higher performance levels, provide better working conditions for their employees, resulting in improved employee well-being. |
| Date: | 2024–09–01 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:hdnspu:193764 |