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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

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.

Suggested Citation

  • Souma, Wataru & Ikeda, Yuichi & Iyetomi, Hiroshi & Fujiwara, Yoshi, 2009. "Distribution of Labour Productivity in Japan over the Period 1996--2006," Economics Discussion Papers 2009-2, Kiel Institute for the World Economy (IfW).
  • Handle: RePEc:zbw:ifwedp:7481
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    References listed on IDEAS

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    1. Giulia Faggio & Kjell G. Salvanes & John Van Reenen, 2010. "The evolution of inequality in productivity and wages: panel data evidence," Industrial and Corporate Change, Oxford University Press, vol. 19(6), pages 1919-1951, December.
    2. Green, Alison & Mayes, David, 1991. "Technical Inefficiency in Manufacturing Industries," Economic Journal, Royal Economic Society, vol. 101(406), pages 523-538, May.
    3. AOYAMA Hideaki & YOSHIKAWA Hiroshi & IYETOMI Hiroshi & FUJIWARA Yoshi, 2008. "Productivity Dispersion: Facts, Theory, and Implications," Discussion papers 08035, Research Institute of Economy, Trade and Industry (RIETI).
    4. Philip Stevens, 2004. "Accounting for Background Variables in Stochastic Frontier Analysis," National Institute of Economic and Social Research (NIESR) Discussion Papers 239, National Institute of Economic and Social Research.
    5. MORIKAWA Masayuki, 2008. "What Do Japanese Unions Do for Productivity?: An Empirical Analysis Using Firm-Level Data," Discussion papers 08027, Research Institute of Economy, Trade and Industry (RIETI).
    6. 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 (IfW), vol. 3, pages 1-17.
    7. 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.
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    Cited by:

    1. 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.

    More about this item

    Keywords

    Labour productivity; marginal labour productivity; inequality;

    JEL classification:

    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • 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

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