Labour Productivity: Social and Economic Prerequisites for Growth

526
DOI: 10.20542/0131-2227-2017-61-4-37-49
Primakov National Research Institute of World Economy and International Relations, Russian Academy of Sciences (IMEMO), 23, Profsoyuznaya Str., Moscow 117997, Russian Federation;
G. Monusova (g.monusova@gmail.com),
Primakov National Research Institute of World Economy and International Relations, Russian Academy of Sciences (IMEMO), 23, Profsoyuznaya Str., Moscow 117997, Russian Federation 

 

Abstract. Labour productivity is one of the key indicators, which dynamics helps to determine whether an economy is efficient and competitive, but most importantly, it allows to evaluate the general state of a society. This research focuses on social factors behind its growth or decline, or those preconditions that deal with the human component of productivity – the direct labour. The drivers of the human capital growth play the leading role in this group of factors, which also includes demography, migration, culture and labour market institutions. Human capital is a driving force of innovative economy, as well as economic and technological development. This has determined how important it is to study all of its components, including public health, quality of education, professional qualification, performance motivation, which are at the focus of this research. Our analysis, based on OECD member states, shows that the labour productivity does not solely depend on whether educational potential and professional qualifications are efficiently employed and improved. To a large extent the labour productivity depends on whether individuals take part in production activity and enjoy it, whether they are engaged in interesting and socially useful work and focus on creating quality products. These attributes are referred to as soft skills. Along with education and additional professional training, they form an invisible part of human capital which is a major prerequisite for the growth of labour productivity. However, high-quality education and prime professional qualifications, as well as efficient state and social institutions could become insignificant in case an individual is incapable to work with maximum performance due to health problems. Although it is hard to quantify health influence on productivity, it is clear that labour and cognitive abilities, psychological resilience and motivation depend on an individual’s physical state and health. Therefore, public health, like knowledge, is a necessary basic component on a country’s path to wellbeing. 

Keywords: labour productivity, human capital, education, overeducation, production skills, soft skills, health 


 REFERENCES

1. Goffe N., Monusova G. Sotsial’nye istochniki proizvoditel’nosti truda [Social Sources of Labour Productivity]. Sotsial’nyi kontekst ekonomicheskogo razvitiya v XXI veke [The Social Context of Economic Development in the XXI Century]. Moscow, IMEMO, 2016, pp. 54-77. DOI:10.20542/978-5-9535-0473-7

2. Krugman . The Age of Diminishing Expectations. Cambridge (Mass.), The MIT Press, 1994. 244 p.

3. OECD. Stat Available at: http://stats.oecd.org (accessed 05.03.2016).

4. Global Trends 2030: Alternative Worlds. Washington (DC), NIC, December 2012. 138 p.

5. Feyrer J. Demographics and Productivity. Available at: http://www.dartmouth.edu/~jfeyrer/demo.pdf (accessed 09.02.2016).

6. Becker G. Human Capital. A Theoretical and Empirical Analysis, with Special Reference to Education. New York, Columbia University Press,1964. 187 p.

7. Schultz T. The Economic Value of Education. New York, Columbia University Press, 1963. 92 p.

8. Mincer J. Progress in Human Capital Analysis of the Distribution of Earnings. NBER, 1974, no. 53. Available at: http://www.nber.org/papers/w0053.pdf (accessed 09.03.2016).

9. Lucas R. On the Mechanics of Economic Development. Journal of Monetary Economic, 1988, no. 1, pp. 3-42.

10. Kapelushnikov R. Ekonomicheskie Ocherki [Economic Essays]. Moscow, Izd.dom Vysshei shkoly ekonomiki, 2016. 571 .

11. Gimpel’son V., Kapelushnikov R., eds. Rossiiskii rabotnik. Obrazovanie. Professiya. Kvalifikastiya [The Russian Worker: Education. Occupation. Skills]. Moscow, Izd. dom Vysshei shkoly ekonomiki, 2011. 575 p.

12. Human Capital: Advances in Theory and Evidence. Cambridge, Cambridge University Press, 2007. 247 p.

13. Heckman J., Kautz T. Hard Evidence on Soft Skills. Labour Economics, 2012, no. 4, pp. 451-464.

14. OECD Employment Outlook, 2004. Paris, OECD, 2004, ch. 4, pp. 183-224.

15. OECD. The Sources of Economic Growth in OECD Countries. Paris, OECD, 2003. 243 p.

16. Education at Glance 2015. OECD Indicators. Paris, OECD, 2015. 564 p.

17. European Social Survey – ESS 2010, 2012, 2014. Available at: www.europeansocialsurvey.org (accessed 19.02.2016).

18. International Social Survey Programme – ISSP 2005, 2009. Available at: http://www.issp.org (accessed 09.02.2016).

19. Felps E. Massovoe protctvetanie [Mass Flourishing]. Moscow, Izdatel’stvo Instituta Gaidara, 2015. 469 .

20. Hirshman A. Vyhod, golos i vernost’ [Exit, Voice and Loyalty]. Moscow, Fond “Liberal’naya missiya”, 2009. 154 p.

21. Schultz T.W. Investment in Human Capital. American Economic Review, 1961, no. 1, pp. 1-17.

22. Mushkin S.J. Health as an Investment. Journal of Political Economy, October 1962, pp. 129-157.

23. Grossman M. On the Concept of Health Capital and the Demand for Health. Journal of Political Economy, 1972, no. 2, pp. 223-255.

24. Bloom D. E., Canning D. The Health and Wealth of Nations. Science, 2000, vol. 287, no. 5456, pp. 1207-1209.

25. Devis K., Collins S.R., Doty M.M., Ho A., Holmgren A.L. Health and Productivity among US Workers. The Commonwealth Fund. Issue Brief. August 2005. Available at: http://www.commonwealthfund.org/usr_doc/856_Davis_hlt_productivity_USworkers.pdf (accessed 19.04.2016).

26. Sharp A. Is Aging a Drag on Productivity Growth? A Review Article on Aging, Health and Productivity: The Economics of Increased Life Expectancy. International Productivity Monitor, Spring 2011, no. 21. Available at: http://www.csls.ca/ipm/21/IPM‑21-Sharpe.pdf (accessed 07.02.2016).


Registered in System SCIENCE INDEX

For citation:
Goffe N., Monusova G. Labour Productivity: Social and Economic Prerequisites for Growth. World Eonomy and International Relations, 2017, vol. 61, No 4, pp. 37-49. https://doi.org/10.20542/0131-2227-2017-61-4-37-49



Comments (0)

No comments

Add comment







Indexed

 

 

 

 

Dear authors! Please note that in the VAK List of peer-reviewed scientific journals, in which the main scientific results of dissertations for the degree of candidate and doctor of sciences should be published for the “MEMO Journal” the following specialties are recorded:
economic sciences:
5.2.5. World Economy.
5.2.1. Economic Theory
5.2.3. Regional and Branch Economics
political sciences:
5.5.4. International Relations
5.5.1. History and Theory of Politics
5.5.2. Political Institutions, Processes, Technologies

 

Current Issue
2023, vol. 67, No. 5
Topical Themes of the Issue:
  • “The Uncanny Valley” of Sustainability: Will World Economy Keep Growing?
  • Crisis-Containing Factors of the PRC’s Development
  • On the Role of Europarties in the Formation of a Pan-European Political Space 
  • Introducing Principles and Standards for Responsible Investment
Submit an Article
INVITATION FOR PUBLICATION
The Editorial Board invites authors to write analytical articles on the following topics:
  • changes in the processes of globalization in modern conditions
  • formation of the new world order
  • shifts in civilization at the stage of transition to a digital society

The editors are also interested in publishing synthesis articles / scientific reviews revealing the main trends in the development of certain regions of the world - Latin America, Africa, South Asia, etc.