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Distribution of Labour Productivity in Japan over the Period 1996?-2006

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Author Info
Souma, Wataru
Ikeda, Yuichi
Iyetomi, Hiroshi
Fujiwara, Yoshi
Abstract

The distribution of labour productivity is investigated by analyzing the longitudinal micro-level data set which contains detailed financial condition of large numbers of Japanese companies over the period 1996?-2006. The generalized beta function of the second kind is applied to explain the distribution. We calculate marginal labour productivity by using the fitting parameters, and show that the economy in the labour market is not in equilibrium. By comparing parameters characterizing high productivity range and low productivity range, we show that inequality of low productivity range is larger than that of high productivity range. In addition, it is shown that the change of inequality in low productivity has strong correlation with GDP.

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Paper provided by Kiel Institute for the World Economy in its series Economics Discussion Papers with number 2009-2.

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Date of creation: 2009
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Handle: RePEc:zbw:ifwedp:7481

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Related research
Keywords: Labour productivity; marginal labour productivity; inequality;

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Find related papers by JEL classification:
L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
C16 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Econometric and Statistical Methods; Specific Distributions
E23 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Production

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  1. Green, Alison & Mayes, David, 1991. "Technical Inefficiency in Manufacturing Industries," Economic Journal, Royal Economic Society, vol. 101(406), pages 523-38, May. [Downloadable!] (restricted)
  2. Giulia Faggio & Kjell Salvanes & John Van Reenen, 2007. "The Evolution of Inequality in Productivity and Wages: Panel Data Evidence," NBER Working Papers 13351, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  3. AOYAMA Hideaki & YOSHIKAWA Hiroshi & IYETOMI Hiroshi & FUJIWARA Yoshi, 2008. "Productivity Dispersion: Facts, Theory, and Implications," Discussion papers 08035, Research Institute of Economy, Trade and Industry (RIETI). [Downloadable!]
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This page was last updated on 2009-10-16.


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