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Decomposing the Labor Productivity Gap between Upper-Middle-Income and High-Income Countries

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dc.contributor.authorAmin, Mohammad
dc.contributor.authorIslam, Asif
dc.contributor.authorKhalid, Usman
dc.date.accessioned2019-12-13T21:18:33Z
dc.date.available2019-12-13T21:18:33Z
dc.date.issued2019-12
dc.description.abstractUsing firm-level survey data on registered private firms collected by the World Bank's Enterprise Surveys, this paper compares the level of labor productivity in 22 upper-middle-income countries and 11 high-income countries for which comparable data are available. The results show that labor productivity in the upper-middle-income countries is about 57.5 percent lower than in the high-income countries. The productivity difference is robust and holds for firms of different sizes and industries. The analysis uses the Oaxaca-Blinder decomposition to identify the sources of the productivity gap. It finds that the endowment effect and the structural effect contribute roughly equally to the productivity gap. Several firm- and country-level variables determine the productivity gap. The biggest contributors via the endowment effect include tertiary education attainment, law and order, and quality management proxied by international quality certification. Factors that contribute most via the structural effect include market size, secondary education attainment, and law and order. Thus, the results underline the importance of human capital, institutions, and market size for closing the productivity gap between the upper-middle-income and high-income countries.en
dc.identifierhttp://documents.worldbank.org/curated/en/282911575384211889/Decomposing-the-Labor-Productivity-Gap-between-Upper-Middle-Income-and-High-Income-Countries
dc.identifier.doi10.1596/1813-9450-9073
dc.identifier.urihttps://hdl.handle.net/10986/33017
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 9073
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectLABOR PRODUCTIVITY
dc.subjectHUMAN CAPITAL
dc.subjectEDUCATIONAL ATTAINMENT
dc.titleDecomposing the Labor Productivity Gap between Upper-Middle-Income and High-Income Countriesen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleDecomposing the Labor Productivity Gap between Upper-Middle-Income and High-Income Countries
okr.date.disclosure2019-12-03
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/282911575384211889/Decomposing-the-Labor-Productivity-Gap-between-Upper-Middle-Income-and-High-Income-Countries
okr.guid282911575384211889
okr.identifier.doi10.1596/1813-9450-9073
okr.identifier.externaldocumentum090224b08739dae4_1_0
okr.identifier.internaldocumentum31605481
okr.identifier.reportWPS9073
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/282911575384211889/pdf/Decomposing-the-Labor-Productivity-Gap-between-Upper-Middle-Income-and-High-Income-Countries.pdfen
okr.statistics.combined1441
okr.statistics.dr282911575384211889
okr.statistics.drstats1017
okr.topicEducation::Economics of Education
okr.topicPrivate Sector Development::Private Sector Economics
okr.topicSocial Protections and Labor::Labor Markets
okr.unitGlobal Indicators Group, Development Economics
relation.isAuthorOfPublicationa811f38c-2de2-5ccd-907b-8c99fc4a5039
relation.isAuthorOfPublication.latestForDiscoverya811f38c-2de2-5ccd-907b-8c99fc4a5039
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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