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.

Prospects for the Growth of Labor Productivity in the Transition to Postindustrial Technological Paradigms

2021 ◽  
pp. 56-59
Author(s):  
Leonid Basovskiy
Keyword(s):  
Labor Productivity ◽  
Productivity Growth ◽  
Developed Countries ◽  
Sixth Order ◽  
Short Term ◽  
Economic Dynamics ◽  
Russian Economy ◽  
Logical Order ◽  
Technological Paradigms

The purpose of the work was to determine the value of labor productivity pro-vided by the fourth, fifth and sixth technological modes. Based on the modeling of Kondratyev's cycles and technological structures in the economic dynamics of devel-oped countries, econometric estimates of labor productivity obtained. It has been estab-lished that during the transition from the fourth to the fifth technological order, the growth of labor productivity in developed countries is ensured from 2.0 to 8.0 times, an average of 4.8 times. In the transition from the fourth to the sixth technological order, the growth of labor productivity in developed countries is ensured from 6 to 17 times, an average of 10.1 times. In the transition from the fifth to the sixth order, the techno-logical order provides an increase in the forgiveness of labor from 1.5 to 3.2 times, on average 2.4 times. In the Russian economy, in the short term, with the transition to the fifth technological order, one can expect productivity growth from 2 to 8 times com-pared to the beginning of the 2000s. In the long term, in the Russian economy during the transition to the sixth technological order, one can expect productivity growth from 6 to 17 times compared to the beginning of the 2000s.

On the conditions of labor productivity growth in agriculture of the Sverdlovsk region

2020 ◽  
pp. 35-45
Author(s):  
E. Potaptseva ◽  
S. Smirnykh
Keyword(s):  
Labor Productivity ◽  
Productivity Growth ◽  
High Performance ◽  
Agricultural Sector ◽  
Negative Impact ◽  
Federal State ◽  
Technical Equipment ◽  
Labor Costs ◽  
Labor Productivity Growth ◽  
City District

Agricultural production is one of the most labor-intensive in the world. In our country, at the same time with large labor costs, the agricultural sector is characterized by low wages. This state of affairs in the industry makes relevant research on the identification of factors of labor productivity growth. In addition, it is necessary to develop methods for creating high-performance jobs. The data of the Federal State Statistics Service and the Ministry of Agriculture of the Russian Federation formed the informational basis of this study. There were also used information officially distributed by the Ministry of Agriculture and Food of the Sverdlovsk region. The research is based on the results of the author's survey of managers and specialists of agricultural enterprises located in the Talitsky city district of the Sverdlovsk region. The study focuses on the study and analysis of the dynamics of the development of the agricultural sector in the region. In conclusion, the conclusions are formulated, and the main factors of labor productivity growth in agriculture of the Sverdlovsk region are identified. The results of the study showed that outdated technical equipment of production has a negative impact on the productivity of labor in the agricultural sector.

Labor productivity in the non-resource sectors of the Russian economy: What determines firm-level growth?

2021 ◽  
pp. 31-67
Author(s):  
Yu. V. Simachev ◽  
M. G. Kuzyk ◽  
A. A. Fedyunina ◽  
A. A. Zaytsev ◽  
M. A. Yurevich
Keyword(s):  
Human Capital ◽  
Labor Productivity ◽  
Productivity Growth ◽  
Government Support ◽  
Competitive Environment ◽  
Firm Level ◽  
Investment Activity ◽  
Process Innovations ◽  
Russian Economy ◽  
High Level

The study discusses underlying factors of labor productivity in firms of basic non-resource industries of the Russian economy and considers the role of innovation and investment activity, human capital development, competitive environment and government support. The data is based on the results of a survey of managers of 713 companies in basic non-resource industries (manufacturing, agriculture, transport, construction). We find high level of divergence of firm productivity at the industry level. We show that higher level of productivity is accompanied with investments in human capital, in fixed assets, as well as the use of digital technologies, but we do not find that higher productivity is accompanied by innovations and expenditures on research and development. We show that productivity growth is combined not only with investment, but also with innovative activity (process innovations) and R&D expenditures. The driver of productivity growth is the private sector: the increase in productivity is driven by firms serving the demand of private medium and large companies. Competitive environment is another factor: moderate competition with import (which acts as a stimulus for innovations of Russian companies) is a condition for the productivity growth.

scholarly journals A cross-sectoral analysis of the relation between labor productivity and labor compensation in the European Union

2021 ◽  
Vol 62 ◽  
pp. 54-65
Author(s):  
A.D. Fofack ◽  
◽  
S.D. Temkeng ◽  
Keyword(s):  
European Union ◽  
Labor Productivity ◽  
Fixed Effects ◽  
The European Union ◽  
Labor Compensation ◽  
Pooled Mean Group ◽  
Long Run ◽  
Short Run ◽  
The Mean ◽  
Productivity Gains

The aim of this paper is to assess and compare the link between labor productivity and compensation in four industries — air transport, electronics, finance, and telecommunications — of twenty‐five member states of the European Union (EU) from 2000 to 2014. The long‐run and short‐run dynamics of productivity and compensation are analyzed using the pooled mean group (PMG), the mean group (MG) and the dynamic fixed effects (DFE) estimators. The results confirm the existence of a gap between productivity and compensation in each of those industries as mentioned in previous studies. However, the results show that despite that gap, the link between the two variables is not broken. That is, productivity and compensation are not only linked in the long run, but they also return to their long‐run equilibrium after every short‐run disturbance. The econometric analysis also reveals that the relation between productivity and compensation does not follow a significantly different pattern from one industry to the other. These findings robust to alternative models, estimation techniques and across industries, suggest that there are some other cross‐sectoral factors preventing productivity gains to be fully reflected on paychecks.

scholarly journals IMPERATIVES OF LABOUR PRODUCTIVITY RISE IN THE RUSSIAN ECONOMY

2019 ◽  
pp. 15-28
Author(s):  
Tatiana Vasilyevna Reshetilo ◽  
Tatiana Vasilyevna Chernova ◽  
Tatiana Sergeyevna Maksimenko ◽  
Irina Nickolaevna Oleynikova
Keyword(s):  
Labor Productivity ◽  
Productivity Growth ◽  
Innovation Management ◽  
Labour Productivity ◽  
Cumulative Effect ◽  
Developed Countries ◽  
Sustainable Growth ◽  
Productivity Index ◽  
Russian Economy ◽  
Priority Direction

Policy of sustainable growth that aims to foster wellbeing of the population and to develop competitiveness of the Russian economy should strive to achieving quality and quantity standards. The labor productivity index takes the strategic point in the system of analytical indicators of assessing the efficiency of economic activity of all economic entities, regardless of the level of hierarchy (enterprise, region, country). The analysis of conditions determining the influence of various factors on productivity growth in the Russian economy, both around the country and in the regions-subjects of the Russian Federation has been given. The main reasons for the decline of the labor productivity index have been identified as following: deindustrialization having a pronounced regional character; low level of organization of production, sales and innovation management; insufficient level of investment attractiveness of Russian companies along with the restricted access to external sources of financing; high cost of capital in the domestic financial market, limiting the potential for technological modernization and innovative growth. The dominating factors of productivity growth in conditions of innovative economy have been allocated: structural, technical and technological, organizational, managerial factors and the factor of developing innovative culture, which create cumulative effect of implementing the project approach to adoption of innovative decisions and innovations. The imperative of increased productivity growth has revealed the need to increase the welfare of the population as the main goal of economic development, which determines the development of a specific mechanism for its achievement as a priority direction of state economic policy. Investment and innovative components of the state policy generally determine labor productivity growth, transition to a new technological structure of the Russian economy and bridging gaps between Russia and developed countries.

The US Bureau of Labor Statistics Productivity Program

2018 ◽  
pp. 120-152 ◽  
Author(s):  
Lucy P. Eldridge ◽  
Chris Sparks ◽  
Jay Stewart
Keyword(s):  
Data Sources ◽  
Labor Costs ◽  
Intermediate Inputs ◽  
Labor Compensation ◽  
Combining Data ◽  
The Us ◽  
Labor Statistics ◽  
Unit Labor Costs ◽  
Capital Services ◽  
Bureau Of Labor Statistics

This chapter describes the US Bureau of Labor Statistics (BLS) productivity program. It presents the BLS’s methodology and data sources used to produce estimates of aggregate and industry-level labor and multifactor productivity growth, along with a number of other productivity-related measures including unit labor costs, labor compensation, and labor share. The chapter provides a detailed description of the main elements of BLS’s productivity measures including: output concepts; how BLS calculates hours worked by combining data from three different surveys; how it accounts for changes in the composition of the labor force; its methodology for estimating capital services; and data sources for intermediate inputs. The chapter also discusses some of the measurement challenges faced by the BLS, and concludes with a discussion of projects currently under way to expand and improve its productivity statistics.

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 Sectoral Differences in Labor Productivity Growth: Estimation and Modeling

2019 ◽  
Vol 11 (1) ◽  
pp. 1
Author(s):  
Roberto Roson
Keyword(s):  
Labor Productivity ◽  
Productivity Growth ◽  
Computable General Equilibrium ◽  
Fixed Effects ◽  
Value Added ◽  
Cge Models ◽  
Long Run ◽  
Sectoral Differences ◽  
Industrial Labor ◽  
Slow Growing

This study provides some empirical evidence and quantification of differences in labor productivity among industries and countries. Using a recently available data base of value added per worker, country and time fixed effects are estimated first for various industries. Results are subsequently elaborated, to identify some time trends and sectoral profiles by country, which are in turn employed in a cluster analysis, summarizing some salient characteristics of industrial labor productivity in different economies. The empirical exercise is motivated by the possible employment of its findings in the construction of long-run economic growth scenarios, by means of Computable General Equilibrium (CGE) models. It is found that: (a) Manufacturing is normally the fastest growing sector and its performance is strongly correlated with the aggregate productivity growth; (b) differences in the rates of agricultural productivity gains are relatively minor; (c) slow-growing countries are characterized by slow-growing Services.

scholarly journals Effects of Foreign Direct Investment and Trade on Labor Productivity Growth in Vietnam

2020 ◽  
Vol 13 (9) ◽  
pp. 204
Author(s):  
Hidekatsu Asada
Keyword(s):  
Foreign Direct Investment ◽  
Labor Productivity ◽  
Productivity Growth ◽  
Direct Investment ◽  
Important Lesson ◽  
Ardl Model ◽  
Labor Productivity Growth ◽  
Long Run ◽  
Short Run ◽  
The Impact

Among developing Asian countries that have accelerated their integration with the global economy, Vietnam has achieved remarkable economic development. Vietnam’s development strategy prioritizing the promotion of trade and foreign direct investment (FDI) resulted in the rapid transformation of its industrial structure from an agro-based one to one led by the export-oriented manufacturing sector in the past three decades. Given the importance of labor productivity growth on the structural transformation, the study examined the effects of FDI and trade on labor productivity growth in Vietnam in the long run and short run. The study employed the autoregressive distributed lag (ARDL) model of analysis using data from 1990 to 2017. The ARDL model analysis revealed that FDI, capital goods import, and export unanimously contributed to the labor productivity growth in the long run, while the impact in the short run remained ambiguous. The results confirm the theoretical framework augmenting the positive relationship that exists between FDI and trade and labor productivity growth. Vietnam’s experience is expected to provide an important lesson to other developing countries.

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