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

Author

Listed:
  • Fujiwara, Yoshi
  • Iyetomi, Hiroshi
  • Ikeda, Yuichi
  • Souma, Wataru

Abstract

The distribution of labour productivity is investigated by analyzing the longitudinal micro-level data set which contains the detailed financial conditions of large numbers of Japanese companies over the period 1996-2006. The authors show that the distribution of labour productivity in both the high and low productivity ranges follows a power law distribution. The generalized beta function of the second kind, which asymptotically reproduces a power law function, is applied to explain the distribution of labour productivity. By comparing the power law exponents that characterize high and low productivity ranges, the authors show that for manufacturing industries, inequality in the low productivity range is larger than that in the high productivity range. For the manufacturing industries, the authors also clarify that the change of inequality in the low productivity range has strong correlation with GDP. In addition, by comparing the power law exponents of the high productivity range in the manufacturing and non-manufacturing industries, the authors show that the inequality of the non-manufacturing industry is higher than that of the manufacturing industry.

Suggested Citation

  • Fujiwara, Yoshi & Iyetomi, Hiroshi & Ikeda, Yuichi & Souma, Wataru, 2009. "Distribution of Labour Productivity in Japan over the Period 1996-2006," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 3, pages 1-14.
    • Handle: RePEc:zbw:ifweej:7600
    DOI: 10.5018/economics-ejournal.ja.2009-14
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Ikeda, Yuichi & Fujiwara, Yoshi & Aoyama, Hideaki & Iyetomi, Hiroshi & Souma, Wataru, 2008. "Superstatistics of Labour Productivity in Manufacturing and Nonmanufacturing Sectors," Economics Discussion Papers 2008-42, Kiel Institute for the World Economy (IfW Kiel).
    2. AOYAMA Hideaki & IYETOMI Hiroshi & SOUMA Wataru & YOSHIKAWA Hiroshi, 2015. "Application of the Concept of Entropy to Equilibrium in Macroeconomics," Discussion papers 15070, Research Institute of Economy, Trade and Industry (RIETI).
    3. 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.
    4. Hideaki Aoyama & Hiroshi Iyetomi & Hiroshi Yoshikawa, 2015. "Equilibrium distribution of labor productivity: a theoretical model," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 10(1), pages 57-66, April.
    5. H. Iyetomi & H. Aoyama & Y. Fujiwara & Y. Ikeda & W. Souma, 2009. "A Paradigm Shift from Production Function to Production Copula: Statistical Description of Production Activity of Firms," Papers 0902.1576, arXiv.org, revised Nov 2010.
    6. AOYAMA Hideaki & IYETOMI Hiroshi & YOSHIKAWA Hiroshi, 2012. "Equilibrium Distribution of Labor Productivity," Discussion papers 12041, Research Institute of Economy, Trade and Industry (RIETI).
    7. Atushi Ishikawa & Shouji Fujimoto & Takayuki Mizuno, 2021. "Why does production function take the Cobb–Douglas form?," Evolutionary and Institutional Economics Review, Springer, vol. 18(1), pages 79-102, April.
    8. Hideaki Aoyama & Hiroshi Iyetomi & Hiroshi Yoshikawa, 2012. "Equilibrium Distribution of Labor Productivity: A Theoretical Model," Papers 1205.2470, arXiv.org.

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    More about this item

    Keywords

    Labour productivity; marginal productivity; power law distribution; inequality;
    All these keywords.

    JEL classification:

    • C16 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Econometric and Statistical Methods; Specific Distributions
    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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