Does Management Improve Labor Productivity?-质量院英文网
Position: Home > Papers > Content

Does Management Improve Labor Productivity?

April 3, 2018
Cheng Hong

Abstract:Different from the existing literature to study the problem of labor productivity growth from macro-structural factors such as human capital and technological progress, based on the data of“ China Employer-Employee Survey ”from2015 to 2016, using the mainstream estimation methods such as OLS, PSM and IV, this paper conducts a solid empirical test on the impact of management efficiency on the labor productivity of enterprises  and discusses its mechanism.The results show that management efficiency has a significant positive causal effect on the labor productivity of enterprises and is an important driving force for enterprises to enhance labor productivity. The  results of parameter estimation show that for every 10% improvement in management efficiency, its marginal contribution to labor productivity growth is about 14.2%.The enterprises with high management efficiency can attract higher-quality staff will be easier to introduce advanced equipment and imported intermediate goods, their knowledge sharing within the enterprise is more smoothly, and they will have higher product quality. That is, management efficiency effectively improves labor productivity through the channels above. The conclusion of this paper has important enlightenment for Chinese enterprises to improve labor productivity.