Comparing the effective Factors on labor Force productivity in small and large industry in Iran: 1994- 2013

Subject Areas : Business Management

Mohammad Mowlaei ¹ , Azadeh Shahab ²

1 - Assistant professor of Bu-Ali Sina University, Department of Economics
2 - MA student of Bu-Ali Sina University, Department of economics

Received: 2016-05-03 Accepted : 2017-02-20 Published : 2017-08-23

Keywords: Human Capital, C23, physical capital, L60, Accumulation of R&D, Small and Large Industries JEL Classification: J24,

Abstract :

Although, the small and large industries are essentially different in thenumber of labor Force and the amount of capital, but their optimalproduction obviously is under the effect of productivity of labor Force.The aim of this study is to analyize and making clear the amount of theeffectiveness of Factors on labor Force productivity in small and largeindustries in Iran during 1994 to 2013. Some of the important Factorsthat are effective in increasing productivity are: physical capital, humancapital, the real wage level, the accumulation research and development(R & D), and the gap between actual and potential production. In thisresearch, using the statistical information from the statistical center ofIran for the ninth industrial groups (I.S.C, Rev, 2) and using panel datamethod. The results showed that the impact of above Factors (except thegap production) on labor productivity is positive and the amount of themin small industries are more than the large ones. Thus, using the optimumof the studied variables in large industries and improving theperformance of them cause the increase in labor production in small andlarge industries in Iran.

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