IDEAS home Printed from https://ideas.repec.org/p/eti/dpaper/12040.html
   My bibliography  Save this paper

Scaling Laws in Labor Productivity

Author

Listed:
  • FUJIWARA Yoshi
  • AOYAMA Hideaki
  • Mauro GALLEGATI

Abstract

Empirical study of firms' growth and fluctuation requires the understanding of the dynamics of labor and productivity among firms by using large-scale data including that of small and medium-sized enterprises (SMEs). Specifically, the key to such understanding is the findings in statistical properties in equilibrium distributions of output, labor, and productivity. We uncover a set of scaling laws of conditional probability distributions, which are sufficient for characterizing joint distributions by employing an updated database covering one million firms including domestic SMEs. These scaling laws show the existence of lognormal joint distributions for sales and labor, and the existence of a scaling law for labor productivity, both of which are confirmed empirically. This framework offers characterization of equilibrium distributions with a small number of scaling indices, which determine macroscopic quantities, thus opening a new perspective of bridging microeconomics and macroeconomics.

Suggested Citation

  • FUJIWARA Yoshi & AOYAMA Hideaki & Mauro GALLEGATI, 2012. "Scaling Laws in Labor Productivity," Discussion papers 12040, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:12040
    as

    Download full text from publisher

    File URL: https://www.rieti.go.jp/jp/publications/dp/12e040.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Foley Duncan K., 1994. "A Statistical Equilibrium Theory of Markets," Journal of Economic Theory, Elsevier, vol. 62(2), pages 321-345, April.
    2. Aoyama,Hideaki & Fujiwara,Yoshi & Ikeda,Yuichi & Iyetomi,Hiroshi & Souma,Wataru Preface by-Name:Yoshikawa,Hiroshi, 2010. "Econophysics and Companies," Cambridge Books, Cambridge University Press, number 9780521191494, January.
    3. Hayfield, Tristen & Racine, Jeffrey S., 2008. "Nonparametric Econometrics: The np Package," Journal of Statistical Software, Foundation for Open Access Statistics, vol. 27(i05).
    4. Qi Li & Jeffrey Scott Racine, 2006. "Nonparametric Econometrics: Theory and Practice," Economics Books, Princeton University Press, edition 1, volume 1, number 8355.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michael S. Delgado & Daniel J. Henderson & Christopher F. Parmeter, 2014. "Does Education Matter for Economic Growth?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 76(3), pages 334-359, June.
    2. Arribas Ivan & Perez Francisco & Tortosa-Ausina Emili, 2010. "The Determinants of International Financial Integration Revisited: The Role of Networks and Geographic Neutrality," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 15(1), pages 1-55, December.
    3. Das, Sonali & Racine, Jeffrey S., 2018. "Interactive nonparametric analysis of nonlinear systems," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 510(C), pages 290-301.
    4. Halkos, George E. & Tzeremes, Nickolaos G., 2014. "The effect of electricity consumption from renewable sources on countries׳ economic growth levels: Evidence from advanced, emerging and developing economies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 39(C), pages 166-173.
    5. Bontemps, Christophe & Racine, Jeffrey S. & Simioni, Michel, 2009. "Nonparametric vs parametric binary choice models: An empirical investigation," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49286, Agricultural and Applied Economics Association.
    6. Halkos, George E. & Tzeremes, Nickolaos G., 2014. "Public sector transparency and countries’ environmental performance: A nonparametric analysis," Resource and Energy Economics, Elsevier, vol. 38(C), pages 19-37.
    7. Marijn Verschelde & Marijke D’Haese & Glenn Rayp & Ellen Vandamme, 2013. "Challenging Small-Scale Farming: A Non-Parametric Analysis of the (Inverse) Relationship Between Farm Productivity and Farm Size in Burundi," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(2), pages 319-342, June.
    8. Stefan Thoenes, 2014. "Understanding the Determinants of Electricity Prices and the Impact of the German Nuclear Moratorium in 2011," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4).
    9. Jesús Peiró-Palomino, 2016. "Social Capital and Economic Growth in Europe: Nonlinear Trends and Heterogeneous Regional Effects," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 78(5), pages 717-751, October.
    10. Mariam Camarero & Jesús Peiró-Palomino & Cecilio Tamarit, 2017. "External imbalances and growth," Working Papers 2017/02, Economics Department, Universitat Jaume I, Castellón (Spain).
    11. Eozenou, Patrick, 2008. "The Determinants of Private Transfers in Rural Vietnam," MPRA Paper 12773, University Library of Munich, Germany.
    12. Christopher F. Parmeter & Jeffrey S. Racine, 2018. "Nonparametric Estimation and Inference for Panel Data Models," Department of Economics Working Papers 2018-02, McMaster University.
    13. Halkos, George & Tzeremes, Nickolaos, 2011. "A conditional full frontier modelling for analyzing environmental efficiency and economic growth," MPRA Paper 32839, University Library of Munich, Germany.
    14. Pecoraro, Brandon, 2014. "Inequality in democracies: Testing the classic democratic theory of redistribution," Economics Letters, Elsevier, vol. 123(3), pages 398-401.
    15. Abhijit Sharma & Alastair Bailey & Iain Fraser, 2011. "Technology Adoption and Pest Control Strategies Among UK Cereal Farmers: Evidence from Parametric and Nonparametric Count Data Models," Journal of Agricultural Economics, Wiley Blackwell, vol. 62(1), pages 73-92, February.
    16. Hideaki Aoyama & Yoshi Fujiwara & Mauro Gallegati, 2015. "Micro-macro relation of production: double scaling law for statistical physics of economy," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 10(1), pages 67-78, April.
    17. Mengistu Assefa Wendimu & Arne Henningsen & Tomasz Gerard Czekaj, 2017. "Incentives and moral hazard: plot level productivity of factory-operated and outgrower-operated sugarcane production in Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 48(5), pages 549-560, September.
    18. Daraio, Cinzia & Simar, Léopold, 2014. "Directional distances and their robust versions: Computational and testing issues," European Journal of Operational Research, Elsevier, vol. 237(1), pages 358-369.
    19. Ardakani, Omid M. & Kishor, N. Kundan & Song, Suyong, 2018. "Re-evaluating the effectiveness of inflation targeting," Journal of Economic Dynamics and Control, Elsevier, vol. 90(C), pages 76-97.
    20. Steven F. Koch & Adl Bosch, 2009. "Inflation and the HouseholdTowards a Measurement of the Welfare Costs of Inflation," Working Papers 3488, South African Reserve Bank.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eti:dpaper:12040. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: TANIMOTO, Toko (email available below). General contact details of provider: https://edirc.repec.org/data/rietijp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.