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Firm Performance and Productivity: Is Labour an Obstacle?

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  • Saibal Ghosh

    (Qatar Central Bank)

Abstract

Using cross-sectional data on SMEs, the paper examines the importance of labour obstacles on their performance and productivity. The findings indicate that labour obstacles are an important impediment affecting firm behaviour: a one standard deviation increase in such obstacles lower sales by 6–8% and employment by 2–5%. In addition, we find that such obstacles are more acute in case of women-focused firms. Taken together, these findings extend the literature on labour obstacles to small firms and suggest that policy needs to focus on this hitherto neglected aspect of SME behaviour.

Suggested Citation

  • Saibal Ghosh, 2022. "Firm Performance and Productivity: Is Labour an Obstacle?," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 65(3), pages 709-728, September.
    • Handle: RePEc:spr:ijlaec:v:65:y:2022:i:3:d:10.1007_s41027-022-00385-7
    DOI: 10.1007/s41027-022-00385-7
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    More about this item

    Keywords

    SME; Labour obstacles; Sales; Employment; Productivity;
    All these keywords.

    JEL classification:

    • L - Industrial Organization
    • O - Economic Development, Innovation, Technological Change, and Growth
    • G - Financial Economics

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