Why the Demand Fluctuations and Productivity of Service Industries (Japanese)

Masayuki Morikawa

Discussion Papers (Japanese) from Research Institute of Economy, Trade and Industry (RIETI)

Abstract: The purpose of this paper is to investigate empirically the relationship between demand fluctuations and productivity of service industries. Specifically, by using unique establishment-level data on service industries in Japan, this paper estimates production functions for six narrowly defined personal-service industries. In almost all the examined service industries, statistically and economically significant negative effects of demand variation on establishment-level productivity are found. This result suggests dispersing holidays may have positive effects on the productivity of service industries.

Pages: 16 pages
Date: 2008-08
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Persistent link: https://EconPapers.repec.org/RePEc:eti:rdpsjp:08042

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