Acemoglu, Johnson, and Robinson [2001] present evidence that colonies with inclusive and extractive institutions have grown at different rates since colonial times. I examine whether their findings are consistent with the estimated effects of schooling and experience on earnings over workers’ 40-45 year working lives in eight countries. I find that an additional year of schooling quickly raised young workers’ earnings in the U.S. and Britain and then had a declining effect over their working life. I find the opposite pattern in six former Spanish colonies where the initial effect of schooling was small and then rose steadily. The effect of experience on the job was also completely different, raising workers earnings by about 200% in the U.S. and Britain and by only 30% temporarily in the former Spanish colonies. I explain how the very different institutions and cultural characteristics in these countries cause these radically different effects on earnings.
{"title":"Why Do Schooling and Experience Affect Workers’ Productivity on the Job So Differently Across Countries?","authors":"T. Breton","doi":"10.2139/ssrn.3908608","DOIUrl":"https://doi.org/10.2139/ssrn.3908608","url":null,"abstract":"Acemoglu, Johnson, and Robinson [2001] present evidence that colonies with inclusive and extractive institutions have grown at different rates since colonial times. I examine whether their findings are consistent with the estimated effects of schooling and experience on earnings over workers’ 40-45 year working lives in eight countries. I find that an additional year of schooling quickly raised young workers’ earnings in the U.S. and Britain and then had a declining effect over their working life. I find the opposite pattern in six former Spanish colonies where the initial effect of schooling was small and then rose steadily. The effect of experience on the job was also completely different, raising workers earnings by about 200% in the U.S. and Britain and by only 30% temporarily in the former Spanish colonies. I explain how the very different institutions and cultural characteristics in these countries cause these radically different effects on earnings.","PeriodicalId":448105,"journal":{"name":"ERN: Productivity (Topic)","volume":"44 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-09-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116023996","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper develops a model of multi-product firms in the presence of different types of labor. I show that an increase in the supply of skilled labor has non- uniform impact on the firm scope: a rise in the number of skilled labor allows the highly productive firms to add more varieties into their product profile but has the less productive firms reduce their scope. The markets become more competitive which generates welfare gains. Under economic integration, countries gain in general but the problem of income distribution arises. In addition, in the imperfect labor market the model generates predictions regarding the trade patterns based on the country endowment. The predictions are consistent with Chinese export data in 2004.
{"title":"Multi-Product Firms, Factor Endowment and Trade Liberalization","authors":"T. Luong","doi":"10.2139/ssrn.3810004","DOIUrl":"https://doi.org/10.2139/ssrn.3810004","url":null,"abstract":"This paper develops a model of multi-product firms in the presence of different types of labor. I show that an increase in the supply of skilled labor has non- uniform impact on the firm scope: a rise in the number of skilled labor allows the highly productive firms to add more varieties into their product profile but has the less productive firms reduce their scope. The markets become more competitive which generates welfare gains. Under economic integration, countries gain in general but the problem of income distribution arises. In addition, in the imperfect labor market the model generates predictions regarding the trade patterns based on the country endowment. The predictions are consistent with Chinese export data in 2004.","PeriodicalId":448105,"journal":{"name":"ERN: Productivity (Topic)","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-03-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116797143","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-03-04DOI: 10.31014/AIOR.1992.04.01.331
H. E. Jekelle
The study examined the effect of workforce diversity on job performance. The employees’ diversity were conceptualised in terms of gender diversity, age diversity, and educational background diversity. The study was underpinned by the social identity theory as it examined such characteristics as gender, age and education. The social identity theory infers that employees have a tendency of classifying themselves based on groups in which they fit in. The study area was public sector in Abuja, Nigeria. The study adopted the quantitative research design whereby questionnaires were administered to the participants. A sample size of 208 participants were drawn from a population of 452 employees of the government agency in Abuja using Raosoft sampling size calculator. However, only 137 valid questionnaires were retrieved from the participants. Therefore, the data analysis was based on the valid retrieved questionnaires. Data analysis and hypotheses test was done using multiple regression analysis. The results showed a significant relationship between the dimensions of the explanatory variables (gender diversity, age diversity and educational background diversity) and the outcome variable (employee performance). The study also revealed that the combination of gender, age and education were the core elements that explained employee performance by 62.9 percent. In terms of individual contribution, the results indicate that educational background diversity contributed most to the variation of employee job performance while both age and gender also contributed significantly. The study therefore recommended that leadership of organisations need to focus more on diversity management in order to integrate the diverse characteristics of the workforce within the organisation.
{"title":"An Empirical Analysis of Key Antecedents of Workforce Diversity on Job Performance in Nigeria","authors":"H. E. Jekelle","doi":"10.31014/AIOR.1992.04.01.331","DOIUrl":"https://doi.org/10.31014/AIOR.1992.04.01.331","url":null,"abstract":"The study examined the effect of workforce diversity on job performance. The employees’ diversity were conceptualised in terms of gender diversity, age diversity, and educational background diversity. The study was underpinned by the social identity theory as it examined such characteristics as gender, age and education. The social identity theory infers that employees have a tendency of classifying themselves based on groups in which they fit in. The study area was public sector in Abuja, Nigeria. The study adopted the quantitative research design whereby questionnaires were administered to the participants. A sample size of 208 participants were drawn from a population of 452 employees of the government agency in Abuja using Raosoft sampling size calculator. However, only 137 valid questionnaires were retrieved from the participants. Therefore, the data analysis was based on the valid retrieved questionnaires. Data analysis and hypotheses test was done using multiple regression analysis. The results showed a significant relationship between the dimensions of the explanatory variables (gender diversity, age diversity and educational background diversity) and the outcome variable (employee performance). The study also revealed that the combination of gender, age and education were the core elements that explained employee performance by 62.9 percent. In terms of individual contribution, the results indicate that educational background diversity contributed most to the variation of employee job performance while both age and gender also contributed significantly. The study therefore recommended that leadership of organisations need to focus more on diversity management in order to integrate the diverse characteristics of the workforce within the organisation.","PeriodicalId":448105,"journal":{"name":"ERN: Productivity (Topic)","volume":"9 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-03-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125114621","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
In Indian economy the demand for Soft skills is at boom. With special reference to service sector; communication skills, self - management, creativity, teamwork, leadership and customer services is highly required. Soft skills are directly influencing the growth of individuals in terms of employment and promotions as well as the industry in terms of revenue and expansion. The role of Soft skills is increasing gradually as the economy is moving towards expansion of service sector. Soft skills as a human capital plays a fundamental role in service sector industry. This research study has analyzed Soft skills role specifically in retail financial services. The study focuses on acknowledging the importance of Soft skills in services. For this purpose the information has been gathered from the industry experts from Life Insurance, General Insurance and Equity. Analysis of various job sites and the earlier research studies in the similar direction has been done. The present study is an attempt to make an in depth analysis of the impact of Soft skills on the rapidly growing selected industries of service sector. The study is confined to selected services in the city of Chennai.
{"title":"A Study on Soft Skill and Its Impact of Growth and Productivity in Service Industry","authors":"Dr.M.Sakthivel Murugan, T. Sujatha","doi":"10.2139/ssrn.3969590","DOIUrl":"https://doi.org/10.2139/ssrn.3969590","url":null,"abstract":"In Indian economy the demand for Soft skills is at boom. With special reference to service sector; communication skills, self - management, creativity, teamwork, leadership and customer services is highly required. Soft skills are directly influencing the growth of individuals in terms of employment and promotions as well as the industry in terms of revenue and expansion. The role of Soft skills is increasing gradually as the economy is moving towards expansion of service sector. Soft skills as a human capital plays a fundamental role in service sector industry. This research study has analyzed Soft skills role specifically in retail financial services. The study focuses on acknowledging the importance of Soft skills in services. For this purpose the information has been gathered from the industry experts from Life Insurance, General Insurance and Equity. Analysis of various job sites and the earlier research studies in the similar direction has been done. The present study is an attempt to make an in depth analysis of the impact of Soft skills on the rapidly growing selected industries of service sector. The study is confined to selected services in the city of Chennai. <br>","PeriodicalId":448105,"journal":{"name":"ERN: Productivity (Topic)","volume":"7 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-11-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115531727","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Daniel A. Ackerberg, G. Frazer, Kyoo il Kim, Yao Luo, Yingjun Su
We revisit identification based on timing and information set assumptions in structural models, which have been used in the context of production functions, demand equations, and hedonic pricing models (e.g. Olley and Pakes (1996), Blundell and Bond (2000)). First, we demonstrate a general under-identification problem using these assumptions, illustrating this with a simple version of the Blundell-Bond dynamic panel model. In particular, the basic moment conditions can yield multiple discrete solutions: one at the persistence parameter in the main equation and another at the persistence parameter governing the regressor. Second, we propose possible solutions based on sign restrictions and an augmented moment approach. We show the identification of our approach and propose a consistent estimation procedure. Our Monte Carlo simulations illustrate the underidentification issue and finite sample performance of our proposed estimator. Lastly, we show that the problem persists in many alternative models of the regressor but disappears in some models under stronger assumptions.
{"title":"Under-Identification of Structural Models Based on Timing and Information Set Assumptions","authors":"Daniel A. Ackerberg, G. Frazer, Kyoo il Kim, Yao Luo, Yingjun Su","doi":"10.2139/ssrn.3717757","DOIUrl":"https://doi.org/10.2139/ssrn.3717757","url":null,"abstract":"We revisit identification based on timing and information set assumptions in structural models, which have been used in the context of production functions, demand equations, and hedonic pricing models (e.g. Olley and Pakes (1996), Blundell and Bond (2000)). First, we demonstrate a general under-identification problem using these assumptions, illustrating this with a simple version of the Blundell-Bond dynamic panel model. In particular, the basic moment conditions can yield multiple discrete solutions: one at the persistence parameter in the main equation and another at the persistence parameter governing the regressor. Second, we propose possible solutions based on sign restrictions and an augmented moment approach. We show the identification of our approach and propose a consistent estimation procedure. Our Monte Carlo simulations illustrate the underidentification issue and finite sample performance of our proposed estimator. Lastly, we show that the problem persists in many alternative models of the regressor but disappears in some models under stronger assumptions.","PeriodicalId":448105,"journal":{"name":"ERN: Productivity (Topic)","volume":"14 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-10-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121554948","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Patent holdup has proven one of the most controversial topics in innovation policy, in part because companies with a vested interest in denying its existence have spent tens of millions of dollars trying to debunk it. Notwithstanding a barrage of political and academic attacks, both the general theory of holdup and its practical application in patent law remain valid and pose significant concerns for patent policy. Patent and antitrust law have made significant strides in the past fifteen years in limiting the problem of patent holdup. But those advances are currently under threat from the Antitrust Division of the Department of Justice, which has reversed prior policies and broken with the Federal Trade Commission to downplay the significance of patent holdup while undermining private efforts to prevent it. Ironically, the effect of the Antitrust Division’s actions is to create a greater role for antitrust law in stopping patent holdup. We offer some suggestions for moving in the right direction.
{"title":"The Role of Antitrust in Preventing Patent Holdup","authors":"C. Shapiro, Mark A. Lemley","doi":"10.2139/ssrn.3666211","DOIUrl":"https://doi.org/10.2139/ssrn.3666211","url":null,"abstract":"Patent holdup has proven one of the most controversial topics in innovation policy, in part because companies with a vested interest in denying its existence have spent tens of millions of dollars trying to debunk it. Notwithstanding a barrage of political and academic attacks, both the general theory of holdup and its practical application in patent law remain valid and pose significant concerns for patent policy. Patent and antitrust law have made significant strides in the past fifteen years in limiting the problem of patent holdup. But those advances are currently under threat from the Antitrust Division of the Department of Justice, which has reversed prior policies and broken with the Federal Trade Commission to downplay the significance of patent holdup while undermining private efforts to prevent it. Ironically, the effect of the Antitrust Division’s actions is to create a greater role for antitrust law in stopping patent holdup. We offer some suggestions for moving in the right direction.","PeriodicalId":448105,"journal":{"name":"ERN: Productivity (Topic)","volume":"330 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-08-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115969298","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We investigate the effect of recent regulatory growth on operating costs per unit of output across a variety of US industries. Using an Augmented Mean Group estimator approach, we find that regulations in the current year and four to five years prior have statistically significant upward effects on operating costs per unit of output. This suggests that the most pronounced effects of regulations occur when a regulation is passed and when compliance dates arrive. Our results imply that the average level of annual regulatory growth (3.55 percent) increases operating costs per unit of output by 3.3 percentage points per year relative to a baseline of no regulatory growth.
{"title":"The Impact of Regulatory Growth on Operating Costs","authors":"Richard F. Fullenbaum, Tyler Richards","doi":"10.2139/ssrn.3697453","DOIUrl":"https://doi.org/10.2139/ssrn.3697453","url":null,"abstract":"We investigate the effect of recent regulatory growth on operating costs per unit of output across a variety of US industries. Using an Augmented Mean Group estimator approach, we find that regulations in the current year and four to five years prior have statistically significant upward effects on operating costs per unit of output. This suggests that the most pronounced effects of regulations occur when a regulation is passed and when compliance dates arrive. Our results imply that the average level of annual regulatory growth (3.55 percent) increases operating costs per unit of output by 3.3 percentage points per year relative to a baseline of no regulatory growth.","PeriodicalId":448105,"journal":{"name":"ERN: Productivity (Topic)","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128697342","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
A recent trend in organizations is to motivate employees with goal-based prosocial rewards, whereby employees must donate their reward to charities upon goal attainment. We conduct an experiment to examine the motivational effects of goal-based prosocial rewards versus goal-based cash rewards, and whether these effects depend on the goal difficulty. We find that when employees are assigned a difficult goal such that the probability of goal attainment is low, goal-based prosocial rewards motivate greater effort than cash rewards. Further, we find that decreasing goal difficulty attenuates the motivational advantage of goal-based prosocial rewards over cash rewards. Our study contributes to the understanding of why and when affect-rich rewards such as prosocial rewards can be more motivating than traditional cash rewards. Our results also suggest that compensation system designers can benefit from using goal-based prosocial rewards when employees face difficult performance goals.
{"title":"Motivating Employees with Goal-Based Prosocial Rewards","authors":"L. Berger, Lan Guo, Adam Presslee","doi":"10.2139/ssrn.3102576","DOIUrl":"https://doi.org/10.2139/ssrn.3102576","url":null,"abstract":"A recent trend in organizations is to motivate employees with goal-based prosocial rewards, whereby employees must donate their reward to charities upon goal attainment. We conduct an experiment to examine the motivational effects of goal-based prosocial rewards versus goal-based cash rewards, and whether these effects depend on the goal difficulty. We find that when employees are assigned a difficult goal such that the probability of goal attainment is low, goal-based prosocial rewards motivate greater effort than cash rewards. Further, we find that decreasing goal difficulty attenuates the motivational advantage of goal-based prosocial rewards over cash rewards. Our study contributes to the understanding of why and when affect-rich rewards such as prosocial rewards can be more motivating than traditional cash rewards. Our results also suggest that compensation system designers can benefit from using goal-based prosocial rewards when employees face difficult performance goals.","PeriodicalId":448105,"journal":{"name":"ERN: Productivity (Topic)","volume":"78 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115479895","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
(1) new theories that target new observations should be constrained to agree with observations successfully represented by existing theories; and
(2) preserving successes of earlier theories helps to discover unanticipated understandings of yet other phenomena.
Weinberg’s advice helps us to answer the question: how do higher risks of skill losses coinciding both with involuntary layoffs (“layoff turbulence”) and with voluntary quits (“quit turbulence”) affect equilibrium unemployment rates? An earlier analysis that had included only layoff turbulence had established a positive relationship between turbulence and the unemployment rate within generous welfare states, but the absence of that relationship in countries with stingier welfare states. A subsequent influential analysis found that even very small amounts of quit turbulence would lead to a negative relationship between turbulence and unemployment rates. But that finding was based on a peculiar calibration of a productivity distribution that generates returns to labor mobility that make the model miss the positive turbulence-unemployment rate relationship that has been a theoretical basis for explaining the persistent trans-Atlantic unemployment divide that emerged in post-1970s data and also miss observations about labor market churning. Repairing the faulty calibration of that productivity distribution not only brings models with quit turbulence into line with those observations but also puts the spotlight on macro-labor calibration strategies and implied returns to labor mobility.
Steven Weinberg(2018)说:(1)针对新观测的新理论应该受到约束，以与现有理论成功代表的观测相一致;(2)保留早期理论的成功之处有助于发现对其他现象意想不到的理解。温伯格的建议帮助我们回答了这样一个问题:与非自愿裁员(“裁员动荡”)和自愿辞职(“辞职动荡”)同时出现的更高技能损失风险，是如何影响均衡失业率的?早先的一项分析只考虑了裁员动荡，结果发现，在福利慷慨的国家，动荡与失业率之间存在正相关关系，但在福利吝啬的国家，这种关系却不存在。随后的一项有影响力的分析发现，即使是非常少量的退出动荡也会导致动荡与失业率之间的负相关关系。但这一发现是基于对生产率分布的一种特殊校准，这种校准产生了劳动力流动性的回报，这使得该模型错过了动荡与失业率的正相关关系，而这种正相关关系是解释20世纪70年代后数据中出现的持续的大西洋两岸失业鸿沟的理论基础，也错过了对劳动力市场动荡的观察。修复生产率分布的错误校准不仅使具有退出湍流的模型符合这些观察结果，而且还将重点放在宏观劳动力校准策略和劳动力流动的隐含回报上。
{"title":"Quit Turbulence and Unemployment","authors":"Isaac Baley, Lars Ljungqvist, T. Sargent","doi":"10.2139/ssrn.3661231","DOIUrl":"https://doi.org/10.2139/ssrn.3661231","url":null,"abstract":"Steven Weinberg (2018) says: <br><br>(1) new theories that target new observations should be constrained to agree with observations successfully represented by existing theories; and <br><br>(2) preserving successes of earlier theories helps to discover unanticipated understandings of yet other phenomena. <br><br>Weinberg’s advice helps us to answer the question: how do higher risks of skill losses coinciding both with involuntary layoffs (“layoff turbulence”) and with voluntary quits (“quit turbulence”) affect equilibrium unemployment rates? An earlier analysis that had included only layoff turbulence had established a positive relationship between turbulence and the unemployment rate within generous welfare states, but the absence of that relationship in countries with stingier welfare states. A subsequent influential analysis found that even very small amounts of quit turbulence would lead to a negative relationship between turbulence and unemployment rates. But that finding was based on a peculiar calibration of a productivity distribution that generates returns to labor mobility that make the model miss the positive turbulence-unemployment rate relationship that has been a theoretical basis for explaining the persistent trans-Atlantic unemployment divide that emerged in post-1970s data and also miss observations about labor market churning. Repairing the faulty calibration of that productivity distribution not only brings models with quit turbulence into line with those observations but also puts the spotlight on macro-labor calibration strategies and implied returns to labor mobility.","PeriodicalId":448105,"journal":{"name":"ERN: Productivity (Topic)","volume":"23 4","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-07-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114045477","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The purpose of this paper is to propose a new empirical model capable of highlighting some aspects of cross-economy convergence which cannot be caught by the popular beta-convergence and sigma-convergence models. The idea is to analyse the growth of the economies as a function of the distance between the observed output per capita and the average output per capita within the sample, separating the behaviour of poorest and richest economies. After its specification, I applied the model to the case of the Russian regions over the period 1995-2015 using the fixed-effect estimator. The results show that, although the existence of a significant beta-convergence process, there is a lack of convergence in differences. When the differences between regional and national output per capita are negative, a positive and significant relationship between growth and levels emerges. Such a relationship turns to be negative and non-significant when the differences are positive, therefore denoting weak non-linearity between growth rate and level of output per capita. Similar findings have been found for labor productivity.
{"title":"Beyond Beta-Convergence: Convergence in Differences and its Application to the Russian Regions","authors":"Gianni Carvelli","doi":"10.5539/IJEF.V12N10P45","DOIUrl":"https://doi.org/10.5539/IJEF.V12N10P45","url":null,"abstract":"The purpose of this paper is to propose a new empirical model capable of highlighting some aspects of cross-economy convergence which cannot be caught by the popular beta-convergence and sigma-convergence models. The idea is to analyse the growth of the economies as a function of the distance between the observed output per capita and the average output per capita within the sample, separating the behaviour of poorest and richest economies. After its specification, I applied the model to the case of the Russian regions over the period 1995-2015 using the fixed-effect estimator. The results show that, although the existence of a significant beta-convergence process, there is a lack of convergence in differences. When the differences between regional and national output per capita are negative, a positive and significant relationship between growth and levels emerges. Such a relationship turns to be negative and non-significant when the differences are positive, therefore denoting weak non-linearity between growth rate and level of output per capita. Similar findings have been found for labor productivity.","PeriodicalId":448105,"journal":{"name":"ERN: Productivity (Topic)","volume":"40 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127181468","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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