The Factors of Labour Productivity in the Republic of North Macedonia

Nikoloski, Dimitar (2020) The Factors of Labour Productivity in the Republic of North Macedonia. Southeast European Review of Business and Economics (SERBE), 1 (2). pp. 22-37. ISSN 2671-339X

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Abstract

Labour productivity as a single factor measure represents the total volume of output produced per unit of labour during a given time reference period. Labour productivity affects various stakeholders in the society such as workers, companies and the government. Hence, determining the factors that affect the labour productivity represent a challenging task. The aim of this paper is to identify the industries that are drivers of the labour productivity growth in the Republic of North Macedonia and to shed light on its main determining factors. We find that with respect to labour productivity the leading industries in the Macedonian economy are the following: Electricity, gas, steam and air conditioning supply; Mining and quarrying; Financial and insurance activities; Information and communication. As potential factors that affect the labour productivity we consider: the consumption of fixed capital, the average net wage, workforce characteristics, jobs’ characteristics and firms characteristics at industry level. The empirical findings show that industries with higher capital intensity and higher average net wage experience the highest labour productivity. In addition, temporary work arrangements, more experienced workforce and higher shares of private companies in a given industry are associated with better performance in terms of labour productivity. Finally, the analysis is used as a basis for defining appropriate policy measures for increasing the labour productivity by using the potentials of the ICT that would lead to greater competitiveness and economic growth.

Item Type: Article
Subjects: Scientific Fields (Frascati) > Social Sciences > Economics and Business
Divisions: Faculty of Economics
Depositing User: Mr Dimitar Risteski
Date Deposited: 22 Oct 2020 08:00
Last Modified: 22 Oct 2020 08:00
URI: http://eprints.uklo.edu.mk/id/eprint/5822

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