EconPapers    
Economics at your fingertips  
 

Labour-use Efficiency in the Italian Machinery Industry: a Non-parametric Stochastic Frontier Perspective

Giancarlo Ferrara, Francesco Vidoli, Jacopo Canello (j.canello@rug.nl) and Arianna Campagna

MPRA Paper from University Library of Munich, Germany

Abstract: Firms’ efficiency is a mainstream in the study of economic growth. Within this broad research area, the present work, conducted as part of the research activities of SOSE S.p.A., analyses the labour use efficiency in the Italian machinery industry through the application of a non-parametric stochastic frontier model with the aim of suggesting new insights to better understand the recent dynamics of the Italian manufacturing system. An extended panel data of manufacturing Small and Medium Enterprises (SMEs) operating in the mechanical industry for the period 2002-2012 has been extracted (in anonymous form) from the Italian Ministry of Economy and Finance annual survey and used for the implementation of the proposed method. Results show the presence of a persistent level of labour-use inefficiency in the sample used for the analysis: this issue is particularly evident for the subset of firms using non standard jobs, while firms entitled to access to wage redundancy fund appear to have achieved higher levels of efficiency in labour input use on average. The analysis also shows that the inefficiency gap between the two subsets of firms tends to reduce in absolute terms over time

Keywords: Labour-use efficiency; Stochastic frontier; SMEs; GAM; Splines (search for similar items in EconPapers)
JEL-codes: C1 C14 H2 J24 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/94359/1/MPRA_paper_94359.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:94359

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter (winter@lmu.de).

 
Page updated 2025-03-19
Handle: RePEc:pra:mprapa:94359