Labor productivity decomposition

Generation and benefit spillover

Absztrakt

Industrial sectoral productivity may be decomposed into the causes behind its generation, labor reduction and output expansion. Another decomposition may be in its induced, direct and indirect components using the Taylor expansion of output. Such a decomposition may be applied to production and allocation of gross output. Production indicates the generation and allocation the benefit spillover of productivity. Each round of Taylor’s expansion indicates identical overall productivity in both activities that differs in terms of its decomposition. The change and the magnitude of productivity are examined in a comparative aspect. Furnished empirical evidence is based on Turkish interindustry data.