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Productivity development in the construction industry and human capital: a literature review

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  • Matthias Bahr
  • Leif Laszig

Abstract

Tis paper is a literature review focusing on human capital, skills of employees, demographic change, management, training and their impact on productivity growth. Intrafirm behaviour has been recognized as a potentially important driver for productivity. Results from surveys show that management practices have become more structured, in the sense of involving more data collection and analysis. Furthermore, a strong positive correlation between the measured management quality and firm performance can be observed. Studies suggest that there is a positive association between management score and productivity growth. The lack or low level of employees' skills and qualifications might be in different ways a possible explanation for the observed slowdown of productivity growth. The main reason for the decline in skilled labor is the demographic change. Construction sectors are increasingly affected by demographic developments. Labour reserves in construction are largely exhausted. Shortage of qualified workforce is impacting project cost, schedules and quality.

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  • Matthias Bahr & Leif Laszig, 2021. "Productivity development in the construction industry and human capital: a literature review," Papers 2104.00129, arXiv.org.
    • Handle: RePEc:arx:papers:2104.00129
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    References listed on IDEAS

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    1. Sandra Broszeit & Marie‐Christine Laible & Ursula Fritsch & Holger Görg, 2019. "Management Practices and Productivity in Germany," German Economic Review, Verein für Socialpolitik, vol. 20(4), pages 657-705, November.
    2. Petri Böckerman & Pekka Ilmakunnas, 2012. "The Job Satisfaction-Productivity Nexus: A Study Using Matched Survey and Register Data," ILR Review, Cornell University, ILR School, vol. 65(2), pages 244-262, April.
    3. Nicholas Bloom & John Van Reenen, 2007. "Measuring and Explaining Management Practices Across Firms and Countries," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(4), pages 1351-1408.
    4. Nicholas Bloom & John Van Reenen, 2010. "Why Do Management Practices Differ across Firms and Countries?," Journal of Economic Perspectives, American Economic Association, vol. 24(1), pages 203-224, Winter.
    5. Daniel S. Nagin & James B. Rebitzer & Seth Sanders & Lowell J. Taylor, 2002. "Monitoring, Motivation, and Management: The Determinants of Opportunistic Behavior in a Field Experiment," American Economic Review, American Economic Association, vol. 92(4), pages 850-873, September.
    6. Edward P. Lazear, 2000. "Performance Pay and Productivity," American Economic Review, American Economic Association, vol. 90(5), pages 1346-1361, December.
    7. Rothgang, Michael & Dehio, Jochen & Janßen-Timmen, Ronald & Stiebale, Joel, 2018. "Sektorfallstudien zu Determinanten der Produktivitätsentwicklung in der Automobilindustrie, im Maschinenbau und bei den Telekommunikationsdienstleistungen," Studien zum deutschen Innovationssystem 9-2018, Expertenkommission Forschung und Innovation (EFI) - Commission of Experts for Research and Innovation, Berlin.
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