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Productivity, Product Quality and Workforce Skills: Food Processing in Four European Countries

Author

Listed:
  • Geoff Mason
  • Bart van Ark
  • Karin Wagner

    (National Institute of Economic and Social Research, University of Groningen, The Netherlands)

Abstract

This article reports on a detailed comparison of productivity, machinery and skills in matched samples of food manufacturing (biscuit) plants in Britain, Germany, the Netherlands and France. In comparing labour productivity levels, explicit account was taken of inter-country differences in the mix of product-qualities as well as differences in physical quantities produced per person-hour. Real ('quality-adjusted') productivity levels were highest in the German sample, an estimated 15 per cent on average above those in the Netherlands and France and about 40 per cent higher than in Britain. International differences in quality—as measured by value added per ton—were found to be at least as important as differences in crude tonnage produced per person-hour. The pattern o f productivity advantage could not be attributed to inter-country variation in the age and sophistication of capital equipment. However, there were important differences in workforce skill levels which could be linked to both relative productivity performance and the predominant choice of product strategy in each country. For example, in the German industry the mix of initial and continuing training received by employees supports a successful strategy of rapid growth in small- and naedium-batch production of elaborate, high value added biscuits which would be hard for the other three countries' indus tries—and particularly Britain—to emulate. In Britain the greatest success is achieved by large highly-autonzated plants engaged in the bulk production of relatively uncomplicated varieties of biscuit. Given the present structure of work force skills in Britain, it is understandable that—as in many other branches of manufacturing—British biscuit producers tend to specialise in relatively low value added goods. However, the study suggests that some of the potential economies of large-scale production are lost due to excessive rates of emergency downtime and the limitations of narrowly-trained employees.

Suggested Citation

  • Geoff Mason & Bart van Ark & Karin Wagner, 1994. "Productivity, Product Quality and Workforce Skills: Food Processing in Four European Countries," National Institute Economic Review, National Institute of Economic and Social Research, vol. 147(1), pages 62-83, February.
  • Handle: RePEc:sae:niesru:v:147:y:1994:i:1:p:62-83
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    Citations

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    Cited by:

    1. Van Reenen, John & Dearden, Lorraine & Reed, Howard, 2000. "Who Gains when Workers Train? Training and Corporate Productivity in a Panel of British Industries," CEPR Discussion Papers 2486, C.E.P.R. Discussion Papers.
    2. Valerie Jarvis & S. J. Prais, 1997. "The Quality of Manufactured Products in Britain and Germany," International Review of Applied Economics, Taylor & Francis Journals, vol. 11(3), pages 421-438.
    3. Borghans,L. & Grip,A.,de, 1999. "Skills and low pay: upgrading or overeducation?," ROA Research Memorandum 005, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    4. Jason Heyes, 1996. "A Formula for Success? Training, Reward and Commitment in a Chemicals Plant," British Journal of Industrial Relations, London School of Economics, vol. 34(3), pages 351-369, September.
    5. Theodoropoulos, Nikolaos & Forth, John & Bryson, Alex, 2019. "Are Women Doing It For Themselves? Gender Segregation and the Gender Wage Gap," IZA Discussion Papers 12657, Institute of Labor Economics (IZA).
    6. Steedman, H., 1997. "Recent trends in engineering and construction skill formation - UK and Germany compared," LSE Research Online Documents on Economics 20331, London School of Economics and Political Science, LSE Library.
    7. Damian Grimshaw & Marcela Miozzo, 2021. "Human Capital and productivity: a call for new interdisciplinary research," Working Papers 006, The Productivity Institute.
    8. Ursula Triebswetter & D. Hitchens, 2004. "The Impact of Environmental Regulation on Competitiveness in the European Cement Industry - Results of a Matched Plant Comparison between Germany, Spain and the UK," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 2(3), pages 38-49, October.
    9. Ursula Triebswetter & D. Hitchens, 2004. "The Impact of Environmental Regulation on Competitiveness in the European Cement Industry - Results of a Matched Plant Comparison between Germany, Spain and the UK," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 2(03), pages 38-49, October.
    10. Michiel Van Dijk & Adam Szirmai, 2005. "Catch Up at the Micro-Level: Evidence from an Industry Case Study Using Manufacturing Census Data," DEGIT Conference Papers c010_038, DEGIT, Dynamics, Economic Growth, and International Trade.
    11. Szirmai, Adam & Van Dijk, Michiel, 2007. "The Micro-Dynamics of Catch Up in Indonesian Paper Manufacturing: An International Comparison of Plant-Level Performance," MERIT Working Papers 2007-010, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    12. Seamus McGuinness & Konstantinos Pouliakas & Paul Redmond, 2018. "Skills Mismatch: Concepts, Measurement And Policy Approaches," Journal of Economic Surveys, Wiley Blackwell, vol. 32(4), pages 985-1015, September.
    13. repec:ces:ifodic:v:2:y:2004:i:3:p:14567758 is not listed on IDEAS
    14. Hilary Steedman, 1997. "Recent Trends in Engineering and Construction Skill Formation - UK and Germany Compared," CEP Discussion Papers dp0353, Centre for Economic Performance, LSE.

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