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Distribution of Labour Productivity in Japan over the Period 1996–-2006

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  • Souma, Wataru
  • Ikeda, Yuichi
  • Iyetomi, Hiroshi
  • Fujiwara, Yoshi
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    Abstract

    The distribution of labour productivity is investigated by analyzing the longitudinal micro-level data set which contains detailed financial condition of large numbers of Japanese companies over the period 1996–-2006. The generalized beta function of the second kind is applied to explain the distribution. We calculate marginal labour productivity by using the fitting parameters, and show that the economy in the labour market is not in equilibrium. By comparing parameters characterizing high productivity range and low productivity range, we show that inequality of low productivity range is larger than that of high productivity range. In addition, it is shown that the change of inequality in low productivity has strong correlation with GDP. --

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    Bibliographic Info

    Paper provided by Kiel Institute for the World Economy in its series Economics Discussion Papers with number 2009-2.

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    Date of creation: 2009
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    Handle: RePEc:zbw:ifwedp:7481

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    Keywords: Labour productivity; marginal labour productivity; inequality;

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    1. AOYAMA Hideaki & YOSHIKAWA Hiroshi & IYETOMI Hiroshi & FUJIWARA Yoshi, 2008. "Productivity Dispersion: Facts, Theory, and Implications," Discussion papers, Research Institute of Economy, Trade and Industry (RIETI) 08035, Research Institute of Economy, Trade and Industry (RIETI).
    2. n/a, 2004. "Accounting for Background Variables in Stochastic Frontier Analysis," NIESR Discussion Papers, National Institute of Economic and Social Research 103, National Institute of Economic and Social Research.
    3. MORIKAWA Masayuki, 2008. "What Do Japanese Unions Do for Productivity?: An Empirical Analysis Using Firm-Level Data," Discussion papers, Research Institute of Economy, Trade and Industry (RIETI) 08027, Research Institute of Economy, Trade and Industry (RIETI).
    4. Giulia Faggio & Kjell Salvanes & John Van Reenen, 2007. "The Evolution of Inequality in Productivity and Wages: Panel Data Evidence," CEP Discussion Papers dp0821, Centre for Economic Performance, LSE.
    5. Ikeda, Yuichi & Fujiwara, Yoshi & Aoyama, Hideaki & Iyetomi, Hiroshi & Souma, Wataru, 2009. "Superstatistics of Labour Productivity in Manufacturing and Nonmanufacturing Sectors," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy, vol. 3(22), pages 1-17.
    6. Hideaki Aoyama & Yoshi Fujiwara & Yuichi Ikeda & Hiroshi Iyetomi & Wataru Souma, 2009. "Superstatistics of Labour Productivity in Manufacturing and Nonmanufacturing Sectors," Papers 0901.1500, arXiv.org.
    7. Green, Alison & Mayes, David, 1991. "Technical Inefficiency in Manufacturing Industries," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 101(406), pages 523-38, May.
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