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Evaluating Labor Productivity in Food Retailing

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Author Info
Park, Timothy

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Abstract

New store formats including competition from supercenters (driven by Wal-Mart), warehouse clubs, and mass merchandisers have emerged as a major threat to traditional grocery chains. A key issue in the food retailing sector is to understand how the earnings of employees respond to the evolution of new retail store formats and store organizational characteristics. The elasticity of complementarity for food retailers measures how changes in store size affect use of full-time and part-time employees. The evidence for constant returns to scale suggests that the Hicks elasticity of complementarity is the appropriate measure to assess input substitutability for food retailers. As store size increases the marginal value of labor rises and firms hire more part-time employees, along with a smaller increase in full-time workers.

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Publisher Info
Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon TN with number 9939.

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Date of creation: 2007
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Handle: RePEc:ags:aaea07:9939

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Related research
Keywords: elasticity of complementarity; employee compensation; food retailing; inverse price elasticities; Agribusiness; Labor and Human Capital;

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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)
    Other versions:
  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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This page was last updated on 2009-11-26.

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