IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Distribution of Labor Productivity: Advanced small- and medium-sized firms (Japanese)

Listed author(s):
  • AOYAMA Hideaki
  • IYETOMI Hiroshi
  • IKEDA Yuichi
  • SOUMA Wataru
  • FUJIWARA Yoshi
  • YOSHIKAWA Hiroshi
Registered author(s):

    We shed light on the current status of small- and medium-sized (SMS) firms in Japan by studying their distribution of labor productivity on the basis of exhaustive financial data on one million firms. In fact, the labor productivity shows significant variance in disagreement with the prediction of the neoclassical theory. Here, we distinguish between SMS and large firms by the numbers of employees. The functional shape of the distribution of labor productivity enables us to extract SMS firms with high productivity from the main body in a simultaneous way; those advanced firms are very few, though. It is thereby an oversimplified idea that SMS firms are always of low productivity. We then find that the emergence of innovation in the non-manufacturing industry is quite different from that in the manufacturing industry. Technological revolutions take place with similar probability irrespective of business sectors in the manufacturing industry. On the other hand, three of the major sectors that should have led the Japanese economy,—construction, wholesale trade, and retail trade—seriously suffer from their low probability for innovation. Finally, we hope the present analysis contributes to the formulation of sound policies for the recovery of the Japanese economy.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    Paper provided by Research Institute of Economy, Trade and Industry (RIETI) in its series Discussion Papers (Japanese) with number 12026.

    in new window

    Length: 16 pages
    Date of creation: Jul 2012
    Handle: RePEc:eti:rdpsjp:12026
    Contact details of provider: Postal:
    11th floor, Annex, Ministry of Economy, Trade and Industry (METI) 1-3-1, Kasumigaseki Chiyoda-ku, Tokyo, 100-8901

    Phone: +81-3-3501-1363
    Fax: +81-3-3501-8577
    Web page:

    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:eti:rdpsjp:12026. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (NUKATANI Sorahiko)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.