scholarly journals Increasing labor income and real unit labor costs in Brazilian agrobusiness

2022 ◽  
Vol 60 (2) ◽  
Author(s):  
Nicole Rennó Castro ◽  
Geraldo Sant’Ana de Camargo Barros
Keyword(s):  
Productivity Growth ◽  
Labor Cost ◽  
Labor Income ◽  
Unit Labor Cost ◽  
Labor Costs ◽  
Annual Increase ◽  
Unit Labor Costs ◽  
Annual Reduction ◽  
Productivity Gains ◽  
The Relationship

Abstract This study analyzes the interactions between per worker labor income (PWLI), labor productivity, real unit labor costs, and the relationship between relevant employee (IPCA) and employers (GDP deflators) prices, specifically focusing on Brazilian agrobusiness. For that purpose, labor productivities of the entire agrobusiness sector and its segments were calculated from 2004 through 2015. We found that the gap between agrobusiness sector deflators and the IPCA did not play a preponderant role to mitigate the effect of PWLI growth of 3.81% annually on real unit labor cost (CURT), which only increased 0.21% annually. In turn, CURT was contained by productivity gains, boosted mainly by agriculture. Without this productivity growth, CURT would have increased at 3.7% annually, thus making unviable the observed simultaneous gains for employers and employees in the Brazilian agrobusiness sector. The result for the primary agrobusiness segment should be highlighted. Even with an annual increase of 4.07% in PWLI, the 7.24% annual growth in productivity implied on an average annual reduction in CURT (-2.56%); without this significant productivity growth, the same increase in PWLI would have boosted CURT by 4.7% annually.

Labor-use efficiency and New York dairy farm financial performance

2019 ◽  
Vol 79 (5) ◽  
pp. 646-665
Author(s):  
Jing Yi ◽  
Jennifer Ifft
Keyword(s):  
Financial Performance ◽  
Labor Productivity ◽  
Dairy Farm ◽  
Dairy Farms ◽  
Labor Cost ◽  
Labor Costs ◽  
Content Type ◽  
Use Efficiency ◽  
Hired Labor ◽  
The Relationship

Purpose Dairy farms, along with livestock and specialty crop farms, face a tight labor supply and increasing labor costs. To overcome the challenging labor market, farm managers can increase labor-use efficiency through both human resource and capital investments. However, little is known about the relationship between such investments and farm profitability. The purpose of this paper is to examine the relationship between dairy farm financial performance and labor-use efficiency, as measured by labor productivity (milk sold per worker equivalent); labor costs (hired labor cost per unit of milk sold and hired labor cost per worker); and investment in labor-saving equipment. Design/methodology/approach Cluster analysis is applied to partition dairy farms into three performance categories (high/middle/low), based on farms’ rate of return on equity, asset turnover ratios and net dairy income per hundredweight of milk. Next, the annual financial rank is fitted into both random- and farm-level fixed-effects ordered logit and linear models to estimate the relationship between dairy farms’ financial performance and labor-use efficiency. This study also investigates the implications of using a single financial indicator as a measure of financial performance, which is the dominant approach in literature. Findings The study finds that greater labor productivity and cost efficiency (as measured by hired labor cost per unit of milk sold) are associated with better farm financial performance. No statistically significant relationship is found between farm financial performance and both hired labor cost per worker and advance milking systems (a proxy of capital investment in labor-saving technology). Future studies would benefit from better measurements of labor-saving technology. This study also demonstrates inconsistency in regression results when individual financial variables are used as a measure of financial performance. The greater labor-use efficiency on high-performing farms may be a combination of hiring more-skilled workers and managerial strategies of reducing unnecessary labor activities. The results emphasize the importance of managerial strategies that improve overall labor-use efficiency, instead of simply minimizing total labor expenses or labor cost per worker. Originality/value This study examines the importance of labor productivity and labor cost efficiency for dairy farm management. It also develops a novel approach which brings a more comprehensive financial performance evaluation into regression models. Furthermore, this study explicitly demonstrates the potential for inconsistent results when using individual financial variable as a measure of financial performance, which is the dominant measurement of financial performance in farm management studies.

scholarly journals IMPROVING LABOR COST MANAGEMENT

2020 ◽  
Vol 2020 (1) ◽  
pp. 271-276
Author(s):  
Gul'fira Bychkova
Keyword(s):  
Cost Management ◽  
Labor Cost ◽  
Labor Costs ◽  
The Relationship

The possibility of managing labor costs through the relationship between the wage Fund, revenue and profit from sales is investigated

scholarly journals Labour Taxation – A Comparative Study

2015 ◽  
Vol 25 (1) ◽  
pp. 1-15
Author(s):  
Claudia Florina Radu ◽  
Florin Dumiter ◽  
Laura Opret
Keyword(s):  
Comparative Study ◽  
Labor Cost ◽  
Labor Income ◽  
Tax Burden ◽  
Labor Costs ◽  
Main Indicator ◽  
Labour Taxation ◽  
Total Labor ◽  
High Level ◽  
Very High

Abstract In our paper we aim to analyze the tax wedge between labor costs and net wage, this being the main indicator for assessing the tax burden on labor. We analyze the components of the tax wedge and its evolution in time, in the OECD countries and in Romania. In this way we can get an image of the total labor cost, observing that our country belongs to countries where labor taxes have a very high level. Thus, from our analysis we showed that in Romania the tax wedge is around 42%, while the OECD average was only 35.9%. In these circumstances it is necessary to adopt certain measures for shifting the tax burden from labor to other tax bases, with the purpose of a fiscal relaxation of labor income

scholarly journals Does China Still Have a Labor Cost Advantage?

2012 ◽  
Vol 12 (3) ◽  
pp. 1850270 ◽  
Author(s):  
Janet Ceglowski ◽  
Stephen S. Golub
Keyword(s):  
Labor Cost ◽  
Cost Advantage ◽  
Labor Costs ◽  
Relative Unit ◽  
Unit Labor Costs ◽  
Real Appreciation

In recent years wages in China have been rising and the yuan has appreciated, potentially eroding China’s cost advantage in manufactures. This paper explores the evolution of China’s relative unit labor costs in manufacturing over 1998-2009. Between 1998 and 2003 China’s unit labor costs fell, but since 2003 they have increased both absolutely and relative to US unit labor costs. Much of the rise in China’s relative unit labor costs can be traced to a real appreciation of the yuan against the dollar. Despite the recent rise, China’s unit labor costs remain low relative to those in most other countries.

scholarly journals Relation between work efficiency and labor cost in Poland

2018 ◽  
Vol 50 (1) ◽  
pp. 47-62
Author(s):  
Magdalena Kapela
Keyword(s):  
Labor Productivity ◽  
Technology Development ◽  
Work Productivity ◽  
Essential Element ◽  
Labor Cost ◽  
Work Efficiency ◽  
Labor Costs ◽  
Basic Goal ◽  
Unit Labor Costs ◽  
Research Period

The basic goal of this document is to research the changes in work efficiency level, as well as labor costs and evaluation of their relation in Poland in comparison to other EU countries. Research period embraced the years 2000–2016. Desired research objective was achieved with the use of review of the literature method, deduction, description and simple statistical and visualization technics (Eurostat, GUS). The analysis of changes and proportions between unit labor costs and labor productivity is essential element of labor market researches. Sustainable and monochromic growth of both factors is important if competitiveness’s improvement ought to be due to technology development not to low-wages politic. Polish production is based on low and middle technology, and until now low labor costs. This system can turn out negative and embed unfavorable economy structure. The level of unit labor costs in Poland in comparison to European Union is low, so as the level of work productivity is. On the other hand the pace of labor productivity is high. Until now the pace of wage growth was lower than labor efficiency, and the balance between two variables was kept.

scholarly journals Labor Costs and the Social Dumping Debate in the European Union

ILR Review ◽  
1994 ◽  
Vol 48 (1) ◽  
pp. 28-47 ◽  
Author(s):  
Christopher L. Ericksno ◽  
Sarosh Kuruvilla
Keyword(s):  
European Union ◽  
Capital Flows ◽  
Capital Mobility ◽  
Western Europe ◽  
Developed Countries ◽  
Labor Cost ◽  
The European Union ◽  
Labor Costs ◽  
The Social ◽  
Unit Labor Costs

This study examines the labor cost incentive for capital movement in manufacturing within the European Union, a key aspect of the “social dumping” debate in Western Europe. The authors find that the percentage differences in unit labor costs between the more developed and less developed countries in the Union not only were large in 1980 but actually grew between 1980 and 1986, and separate estimates of compensation and productivity growth rates do not indicate that significant convergence occurred over the remainder of the 1980s. Although these findings apparently confirm that a labor cost incentive for capital mobility does exist, analysis of foreign direct investment data indicates that during the period 1980–88 capital flows to the lower labor cost countries actually were not much larger than capital flows to the higher labor cost countries.

Labor Productivity versus Labor Compensation:Some Simple arithmetic

2014 ◽  
pp. 36-61 ◽  
Author(s):  
R. Kapeliushnikov
Keyword(s):  
Labor Productivity ◽  
Productivity Growth ◽  
Labor Costs ◽  
Simple Arithmetic ◽  
Labor Compensation ◽  
Stable Relationship ◽  
Russian Economy ◽  
Long Run ◽  
Unit Labor Costs ◽  
In The Beginning

The paper explores the “race” between wages and labor productivity in the contemporary Russian economy. It continues the author’s previous research where the same problem was examined for the earlier period of 1997-2007. The analysis focuses on dynamics in labor productivity and labor compensation during the economic crisis of 2008-2009 and subsequent years. The author shows that conventional wisdom implying that in Russia wages persistently increase at much higher annual rates than productivity is wrong: over 1997-2012 there was no stable relationship and waves of faster wage growth alternated with waves of faster productivity growth. However in the long run productivity outpaced labor compensation. As a result in 2011-2012 real unit labor costs for Russian firms were even lower than in the mid of the 1990s or in the beginning of the 2000s.

scholarly journals Unemployment, Labor Costs, and Recessions: Implications for the Inflation Outlook

2011 ◽  
pp. 1-6 ◽  
Author(s):  
Kyle Fee ◽  
Mark E. Schweitzer
Keyword(s):  
Labor Cost ◽  
Labor Costs ◽  
Rate Of Increase ◽  
Cost Growth ◽  
Restraining Force ◽  
The Relationship

Economists have been arguing about the connection between unemployment and inflation for decades. Critics claim that the connection is unreliable and leads policymakers astray, while others argue that the relationship is useful for forecasting. We examine the more direct connections between elevated unemployment levels and the rate of increase in wage and labor costs, more generally. We find that wage and labor cost growth has declined markedly following recent recessions. It has again declined sharply in the most recent recession. We also find that compensation typically remains subdued during the initial phases of recent recoveries. This is again the case in the current recovery, making labor costs a significant restraining force on inflation going forward.

The number of employed as a macroeconomic indicator of working time dynamics

2020 ◽  
Vol 16 (5) ◽  
pp. 935-945
Author(s):  
I.A. Zaikova
Keyword(s):  
Comparative Analysis ◽  
Manufacturing Sector ◽  
Working Hours ◽  
Working Time ◽  
Labor Costs ◽  
Factors Affecting ◽  
Time Dynamics ◽  
Developed Economies ◽  
The Relationship ◽  
Macroeconomic Indicator

Subject. The working time of workers at any stage of economic development is a value reflecting the level of labor productivity. Any progress in productivity contributes to changes in the volume of labor costs and the number of employed. Depending on the relationship between the total volume of labor costs and the number of employed, the duration of working time per one worker may change (it may increase, decrease, or remain unchanged). Objectives. The study aims to confirm the importance of such a macroeconomic indicator as the number of employed in varying working hours. Methods. The study rests on the comparative analysis of countries with developed economies based on some indicators like dynamics of the working time fund, dynamics of the number of employed, average number of hours worked during the year per employee, etc. The analyzed timespan is 25 years (from 1991 to 2016). Results. The comparative analysis revealed that in the non-production sphere and the economy as a whole the macroeconomic determinants correlate so that the length of working time per worker reduces. When considering the analysis results for the manufacturing sector, no single trend was identified. Conclusions. One of the key factors affecting the change in working hours is the number of employed. The relationship between the working time fund and the number of employed directly determines the dynamics of working time per worker.

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