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Firm performance and productivity: Is labour an obstacle?

By: Ghosh, Saibal.
Material type: materialTypeLabelBookPublisher: The Indian Journal of Labour Economics Description: 65(3), Jul-Sep, 2022: p. 709-728.Subject(s): SME, Labour obstacles, Sales, Employment, Productivity In: The Indian Journal of Labour EconomicsSummary: Using cross-sectional data on SMEs, the paper examines the importance of labour obstacles on their performance and productivity. The findings indicate that labour obstacles are an important impediment affecting firm behaviour: a one standard deviation increase in such obstacles lower sales by 6–8% and employment by 2–5%. In addition, we find that such obstacles are more acute in case of women-focused firms. Taken together, these findings extend the literature on labour obstacles to small firms and suggest that policy needs to focus on this hitherto neglected aspect of SME behaviour. – Reproduced
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Articles Articles Indian Institute of Public Administration
65(3), Jul-Sep, 2022: p. 709-728 Available AR128265

Using cross-sectional data on SMEs, the paper examines the importance of labour obstacles on their performance and productivity. The findings indicate that labour obstacles are an important impediment affecting firm behaviour: a one standard deviation increase in such obstacles lower sales by 6–8% and employment by 2–5%. In addition, we find that such obstacles are more acute in case of women-focused firms. Taken together, these findings extend the literature on labour obstacles to small firms and suggest that policy needs to focus on this hitherto neglected aspect of SME behaviour. – Reproduced

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