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

16 Pages Posted: 18 Dec 2010

See all articles by Yoshi Fujiwara

Yoshi Fujiwara

University of Hyogo - Graduate School of Simulation Studies

Hiroshi Iyetomi

Niigata University

Yuichi Ikeda

affiliation not provided to SSRN

Wataru Souma

ATR-NIS Network Informatics Laboratories

Multiple version iconThere are 2 versions of this paper

Date Written: 2009

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. --

Keywords: Labour productivity, marginal productivity, power law distribution, inequality

JEL Classification: C16, E23, L60

Suggested Citation

Fujiwara, Yoshi and Iyetomi, Hiroshi and Ikeda, Yuichi and Souma, Wataru, Distribution of Labour Productivity in Japan Over the Period 1996-2006 (2009). Economics: The Open-Access, Open-Assessment E-Journal, Vol. 3, 2009-14, Available at SSRN: https://ssrn.com/abstract=1726844 or http://dx.doi.org/10.5018/economics-ejournal.ja.2009-14

Yoshi Fujiwara (Contact Author)

University of Hyogo - Graduate School of Simulation Studies ( email )

7-1-28 Minato-jima, Minami-machi
Chuo-ku
Kobe, Hyogo 650-0047
Japan

Hiroshi Iyetomi

Niigata University ( email )

8050 Ikarashi-2-cho
Nishi-ku
Niigata, 9502181
Japan

Yuichi Ikeda

affiliation not provided to SSRN

No Address Available

Wataru Souma

ATR-NIS Network Informatics Laboratories ( email )

Japan

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