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Quality in work and aggregate productivity

  • Vicente Royuela

    ()

    (Faculty of Economics, University of Barcelona)

  • Jordi Suriñach

    ()

    (Faculty of Economics, University of Barcelona)

We explore the relationship between quality in work and aggregate productivity in regions and sectors. Using recent Spanish aggregate data for the period 2001-2006, we find that quality in work may be an important factor to explain productivity levels in sectors and regions. We use two alternatives definitions of quality in work: one from survey data and the other from a social indicators approach. We also use two different measurements of labour productivity to test the robustness of our results. The estimates are run using a simultaneous equation model for our panel of data, and find important differences between high tech and low tech sectors: a positive relationship between quality in work and productivity in the former case, and a negative relationship in the latter. Consequently, on the one hand we see that quality in work is not only an objective per se,but may also be a production factor able to increase the wealth of regions; on the other hand, at the aggregate level, we may also find that high productivity levels coincide with lower quality in work conditions.

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File URL: http://www.ub.edu/irea/working_papers/2009/200901.pdf
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Paper provided by University of Barcelona, Research Institute of Applied Economics in its series IREA Working Papers with number 200901.

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Length: 51 pages
Date of creation: Jan 2009
Date of revision: Jan 2009
Handle: RePEc:ira:wpaper:200901
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