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Labour demand and efficiency in Swedish savings banks

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  • Almas Heshmati

Abstract

The paper is concerned with the estimation of labour demand. The model is generalized to incorporate a variance function. A flexible translog functional form is used where the demand for labour is a function of wages, outputs, quasi-fixed inputs and a time variable. The variance function appears multiplicatively with the demand function and it accommodates both positive and negative marginal effects with respect to the determinants of employment. The model includes features of the usual panel data models. A multi-step procedure is used to estimate the parameters of the model. Focus is on the estimation of productivity and efficiency of labour in Swedish savings banks. The labour productivity and efficiency is defined in terms of a shift in the labour demand over time and the bank's distance from the labour demand frontier, respectively. Empirical results show that the average labour efficiency is about 96%.

Suggested Citation

  • Almas Heshmati, 2001. "Labour demand and efficiency in Swedish savings banks," Applied Financial Economics, Taylor & Francis Journals, vol. 11(4), pages 423-433.
    • Handle: RePEc:taf:apfiec:v:11:y:2001:i:4:p:423-433
    DOI: 10.1080/096031001300313983
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    References listed on IDEAS

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    1. Almas Heshmati, 2003. "Productivity Growth, Efficiency and Outsourcing in Manufacturing and Service Industries," Journal of Economic Surveys, Wiley Blackwell, vol. 17(1), pages 79-112, February.
    2. Jaffry, Shabbar & Ghulam, Yaseen & Cox, Joe, 2013. "Trends in efficiency in response to regulatory reforms: The case of Indian and Pakistani commercial banks," European Journal of Operational Research, Elsevier, vol. 226(1), pages 122-131.
    3. Khayyat, Nabaz T. & Heshmati, Almas, 2014. "Production Risk, Energy Use Efficiency and Productivity of Korean Industries," Working Paper Series in Economics and Institutions of Innovation 359, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    4. Jaffry, Shabbar & Ghulam, Yaseen & Cox, Joe, 2008. "Labour use efficiency in the Indian and Pakistani commercial banks," Journal of Asian Economics, Elsevier, vol. 19(3), pages 259-293, June.
    5. Tran, Carolyn D.T.T. & Battese, George E. & Villano, Renato A., 2020. "Administrative capacity assessment in higher education: The case of universities in Vietnam," International Journal of Educational Development, Elsevier, vol. 77(C).
    6. Shabbar Jaffry & Yaseen Ghulam & Joe Cox, 2006. "Impact of Regulatory Reforms on Labour Efficiency in the Indian and Pakistani Commercial Banks," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 45(4), pages 1085-1102.

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