Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/142362
Authors: 
Heshmati, Almas
Rashidghalam, Masoomeh
Year of Publication: 
2016
Series/Report no.: 
IZA Discussion Papers 9923
Abstract: 
Labour productivity reflects a firm's ability to generate higher production or value-added. This paper analyses labour productivity and its determinants in the manufacturing and service sectors in Kenya. As the largest economy in East Africa, it is crucial for Kenya to have high labour productivity as it has strong implications for economic growth and welfare. The paper also provides practitioners with a better understanding of the state of labour productivity in the country. Using the World Bank's Enterprise Survey's database for 2013, we find that capital intensity and wage significantly and positively affected labour productivity. A higher female share in the labour force reduced labour productivity. We also found that training and education were associated with higher labour productivity. Reliance on technologies such as emails and websites for communication had a positive but insignificant impact on firms' labour productivity. On the basis of these observations we make a number of recommendations to promote higher productivity of labour.
Subjects: 
labour market
labour productivity
manufacturing
services
firms
Kenya
JEL: 
J01
J16
J24
L60
O14
Document Type: 
Working Paper

Files in This Item:
File
Size
253.94 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.