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Evaluating Labor Productivity in Food Retailing

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Author Info
Park, Timothy A.

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Abstract

Competition from new store formats including supercenters, warehouse clubs, and mass merchandisers has emerged as a major threat to traditional grocery chains. A primary objective of this paper is to understand how the store-level performance is related to the workforce composition of full-time and part-time employees chosen by the food retailer along with benefits and incentives provided to employees. The elasticity of complementarity for food retailers measures how changes in store size affect use of full-time and part-time employees. Larger store size increases the marginal value of labor, and firm hiring decisions shift to expanded use of part-time employees.

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Publisher Info
Article provided by Northeastern Agricultural and Resource Economics Association in its journal Agricultural and Resource Economics Review.

Volume (Year): 37 (2008)
Issue (Month): 2 (October)
Pages:
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Handle: RePEc:ags:arerjl:45663

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Related research
Keywords: elasticity of complementarity; employee compensation; food retailing; inverse price elasticities; Food Consumption/Nutrition/Food Safety; Labor and Human Capital; Productivity Analysis;

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  1. Roger Betancourt & Margaret Malanoski, 1999. "An Estimable Model of Supermarket Behavior: Prices, Distribution Services and Some Effects of Competition," Empirica, Springer, vol. 26(1), pages 55-73, March. [Downloadable!] (restricted)
  2. Grant, James H & Hamermesh, Daniel S, 1981. "Labor Market Competition among Youths, White Women and Others," The Review of Economics and Statistics, MIT Press, vol. 63(3), pages 354-60, August. [Downloadable!] (restricted)
    Other versions:
  3. Farber, Henry S & Saks, Daniel H, 1980. "Why Workers Want Unions: The Role of Relative Wages and Job Characteristics," Journal of Political Economy, University of Chicago Press, vol. 88(2), pages 349-69, April. [Downloadable!] (restricted)
  4. Hausman, Jerry A, 1978. "Specification Tests in Econometrics," Econometrica, Econometric Society, vol. 46(6), pages 1251-71, November. [Downloadable!] (restricted)
  5. Emek Basker, 2005. "Job Creation or Destruction? Labor Market Effects of Wal-Mart Expansion," The Review of Economics and Statistics, MIT Press, vol. 87(1), pages 174-183, 02. [Downloadable!] (restricted)
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  6. Georgeanne M. Artz & Kenneth E. Stone, 2006. "Analyzing the Impact of Wal-Mart Supercenters on Local Food Store Sales," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 88(5), pages 1296-1303, December. [Downloadable!] (restricted)
  7. Charles Brown & James L. Medoff, 2003. "Firm Age and Wages," Journal of Labor Economics, University of Chicago Press, vol. 21(3), pages 677-698, July. [Downloadable!]
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  8. Martin Neil Baily & Robert M. Solow, 2001. "International Productivity Comparisons Built from the Firm Level," Journal of Economic Perspectives, American Economic Association, vol. 15(3), pages 151-172, Summer. [Downloadable!] (restricted)
  9. Anja Decressin & Julia Lane & Kristin McCue & Martha Stinson, 2005. "Employer-Provided Benefit Plans, Workforce Composition and Firm Outcomes," Technical Papers 2005-01, Longitudinal Employer-Household Dynamics, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
  10. Elizabeth E. Davis & Matthew Freedman & Julia Lane & Brian McCall & Nicole Nestoriak & Timothy Park, 2006. "Supermarket Human Resource Practices and Competition from Mass Merchandisers," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 88(5), pages 1289-1295, December. [Downloadable!] (restricted)
  11. Sato, Ryuzo & Koizumi, Tetsunori, 1973. "On the Elasticities of Substitution and Complementarity," Oxford Economic Papers, Oxford University Press, vol. 25(1), pages 44-56, March. [Downloadable!] (restricted)
  12. King, Robert P. & Jacobson, Elaine M. & Seltzer, Jonathan M., 2002. "The 2002 Supermarket Panel Annual Report," Supermarket Panel Reports 14356, University of Minnesota, The Food Industry Center. [Downloadable!]
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  13. Stephan J. Goetz & Anil Rupasingha, 2006. "Wal-Mart and Social Capital," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 88(5), pages 1304-1310, December. [Downloadable!] (restricted)
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