Firm Performance and Productivity: Is Labour an Obstacle?

Saibal Ghosh

The Indian Journal of Labour Economics, 2022, vol. 65, issue 3, No 6, 709-728

Abstract: Abstract 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.

Keywords: SME; Labour obstacles; Sales; Employment; Productivity (search for similar items in EconPapers)
JEL-codes: G L O (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1007/s41027-022-00385-7

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