The Effects of Human Development on Labor Productivity in Selected OECD Countries

Subject Areas : Business Management

Monere Dezaji ¹ , Arash Ketabforosh Badri ²

1 - Faculty Member, Economics Department, Tabriz Branch, Islamic Azad University, Tabriz, Iran
2 - MSc, Economics Department, Tabriz Branch, Islamic Azad University, Tabriz, Iran

Received: 2013-12-10 Accepted : 2014-11-15 Published : 2014-12-22

Keywords: J24, O15, Labor Productivity, Human Development, Panel Data JEL Classification: C23,

Abstract :

One of the basic issues in the field of development is rational utilization of the abilities and talents of the manpower in the community. Increasing productivity is the only way that will promote the economic development and welfare of a nation. The miraculous changes in short-term economic growth and development in many countries are the result of increased productivity and the optimum, efficient and effective use of human and physical resources they have. In this regard, this study tries to investigate the effects of the Human Development Index on labor productivity in 32 selected OECD countries by using panel data model in the period 2002-2009. The results show that Human Development Index had a significant and positive effect on labor productivity in the countries studied. Also, openness, value added production, health expenditures and physical capital have positive and significant effects on labor productivity.  

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