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Analysing Firm-Level Labour Productivity Using Survey Data

Author

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  • Mark Rogers

    (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

  • Yi-Ping Tseng

    (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

Abstract

This paper investigates the determinants of firm-level labour productivity in the manufacturing sector using GAPS data. These data are from a stratified survey, where the strata are based on industry and firm size. The paper focuses on whether weights should be applied in the regression analysis. Augmented Cobb-Douglas production functions are estimated, where a set of dummies are used as proxies for firm-level knowledge stocks. The regression results show that there are significant differences between the parameters estimated by weighted least squares (WLS) and OLS, particularly for the variables union density and training expenditure. These differences can be caused by parameter heterogeneity (across strata); in theoretical terms this means that applying the same production function across all firms is not appropriate. Given this parameter heterogeneity, both the OLS and WLS methods do not estimate parameters of interest. Instead, there is a requirement to estimate sub-sample regressions. These are presented in the second part of the empirical results.

Suggested Citation

  • Mark Rogers & Yi-Ping Tseng, 2000. "Analysing Firm-Level Labour Productivity Using Survey Data," Melbourne Institute Working Paper Series wp2000n10, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    • Handle: RePEc:iae:iaewps:wp2000n10
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    File URL: http://melbourneinstitute.unimelb.edu.au/downloads/working_paper_series/wp2000n10.pdf
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    References listed on IDEAS

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    1. Zvi Griliches, 1998. "Productivity, R&D, and Basic Research at the Firm Level in the 1970s," NBER Chapters, in: R&D and Productivity: The Econometric Evidence, pages 82-99, National Bureau of Economic Research, Inc.
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    7. Black, Sandra E & Lynch, Lisa M, 1996. "Human-Capital Investments and Productivity," American Economic Review, American Economic Association, vol. 86(2), pages 263-267, May.
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    Cited by:

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    4. Fallahi, Firouz & Sakineh, Sojoodi & Mehin Aslaninia, Nasim, 2010. "Determinants of Labor Productivity in Iran’s Manufacturing Firms: With Emphasis on Labor Education and Training," MPRA Paper 27447, University Library of Munich, Germany.
    5. Yismaw Ayelign & Lakhwinder Singh, 2019. "Labor productivity of Ethiopian large and Medium Scale Manufacturing Sector," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 5(3), pages 64-70, September.

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