DOI: 10.5716/978-981-08-9514-3_MME17

Authors: H. Aoyama

Abstract:

We review recent advances of phenomenology and the ories of labor productivity. While main-stream economics insists that labor productivity is equal among firms and sectors, based on the general equilibrium theory, the truth is far from it. Study of the labor productivity in various industrial sectors of Japan and several European countries reveal that labor productivity is distributed with fat tail at the higher end, which is described very well by the power law. Aoki-Yoshikawa theory of labor productivity, which used the entropy maximization borrowed from standard classical statistical physics, yields the Boltzmann (exponential) distribution of the labor productivity of workers, whose temperature is determined by the gross demand and the productivity distribution of firms. Applying superstatistics on top of this theory, we find that fluctuation of the gross demand induces the fluctuation of the effective temperature, yielding the power law distribution of the labor productivity at higher end if certain condition of the fluctuation of the demand is met. In the middle to low range of the labor productivity, its distribution is drastically different form the power law. We show that it is well described by Boltzmann distribution with negative temperature.

Keywords: component; Labor Productivity, Power law, Statistical Physics

Price: $4.99

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