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Register a new userSuperstatistics of Labour Productivity in Manufacturing and Nonmanufacturing Sectors
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Labour productivity distribution (dispersion) is studied both theoretically and empirically. Superstatistics is presented as a natural theoretical framework for productivity. The demand index $kappa$ is proposed within this framework as a new business index. Japanese productivity data covering small-to-medium to large firms from 1996 to 2006 is analyzed and the power-law for both firms and workers is established. The demand index $kappa$ is evaluated in the manufacturing sector. A new discovery is reported for the nonmanufacturing (service) sector, which calls for expansion of the superstatistics framework to negative temperature range.
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We discuss superstatistics theory of labour productivity. Productivity distribution across workers, firms and industrial sectors are studied empirically and found to obey power-distributions, in sharp contrast to the equilibrium theories of mainstream economics. The Pareto index is found to decrease with the level of aggregation, {it i.e.}, from workers to firms and to industrial sectors. In order to explain these phenomenological laws, we propose a superstatistics framework, where the role of the fluctuating temperature is played by the fluctuating demand.
Labor productivity was studied at the microscopic level in terms of distributions based on individual firm financial data from Japan and the US. A power-law distribution in terms of firms and sector productivity was found in both countries data. The labor productivities were not equal for nation and sectors, in contrast to the prevailing view in the field of economics. It was found that the low productivity of the Japanese non-manufacturing sector reported in macro-economic studies was due to the low productivity of small firms.
An agent-based model for firms dynamics is developed. The model consists of firm agents with identical characteristic parameters and a bank agent. Dynamics of those agents is described by their balance sheets. Each firm tries to maximize its expected profit with possible risks in market. Infinite growth of a firm directed by the profit maximization principle is suppressed by a concept of going concern. Possibility of bankruptcy of firms is also introduced by incorporating a retardation effect of information on firms decision. The firms, mutually interacting through the monopolistic bank, become heterogeneous in the course of temporal evolution. Statistical properties of firms dynamics obtained by simulations based on the model are discussed in light of observations in the real economy.
Superstatistics [C. Beck and E.G.D. Cohen, Physica A 322, 267 (2003)] is a formalism aimed at describing statistical properties of a generic extensive quantity E in complex out-of-equilibrium systems in terms of a superposition of equilibrium canonical distributions weighted by a function P(beta) of the intensive thermodynamic quantity beta conjugate to E. It is commonly assumed that P(beta) is determined by the spatiotemporal dynamics of the system under consideration. In this work we show by examples that, in some cases fulfilling all the conditions for the superstatistics formalism to be applicable, P(beta) is actually affected also by the way the measurement of E is performed, and thus is not an intrinsic property of the system.
We construct a theoretical model for equilibrium distribution of workers across sectors with different labor productivity, assuming that a sector can accommodate a limited number of workers which depends only on its productivity. A general formula for such distribution of productivity is obtained, using the detail-balance condition necessary for equilibrium in the Ehrenfest-Brillouin model. We also carry out an empirical analysis on the average number of workers in given productivity sectors on the basis of an exhaustive dataset in Japan. The theoretical formula succeeds in explaining the two distinctive observational facts in a unified way, that is, a Boltzmann distribution with negative temperature on low-to-medium productivity side and a decreasing part in a power-law form on high productivity side.
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