ERIC Number: EJ1251091
Record Type: Journal
Publication Date: 2020
Pages: 11
Abstractor: As Provided
ISBN: N/A
ISSN: ISSN-1363-9080
EISSN: N/A
Human Capital and Technical Efficiency: A Stochastic Frontier Analysis of Caribbean Firms
Mohan, Preeya
Journal of Education and Work, v33 n2 p143-153 2020
Technical efficiency is the ability of a firm to produce its maximum output using a set of inputs or to minimise the use of its inputs to produce a certain level of output. When a firm is operating at its most efficient, operating costs can be minimised, profits maximised and competitiveness improved. This study investigates the role of a firm's human capital in impacting its technical efficiency. It uses the Productivity, Technology, Innovation survey (PROTEqIN) conducted for a sample of 13 Caribbean countries in 2014 and comprises 1,966 firms. To account for differences in efficiency of firms, a Stochastic Frontier Analysis is used to estimate the production function as well as technical efficiency scores. The efficiency scores are then regressed against workforce characteristics and other firm-specific control variables using a Tobit estimator with robust standard errors. The results suggest that workforce characteristics, in particular workforce composition in terms of the proportion of managers to total workforce and graduate and post-graduate education play an important role in influencing firm efficiency, perhaps more so than other firm-specific variables. Lastly, government technical assistance programmes in the Caribbean also act to improve firm technical efficiency.
Descriptors: Human Capital, Productivity, Innovation, Role, Efficiency, Business Administration, Scores, Measurement Techniques, Management Development, Educational Attainment, Graduate Study, Technical Assistance, Labor Force Development, Employees, Vocational Education, Undergraduate Study, Industry, Job Training, Foreign Countries, Manufacturing, Service Occupations
Routledge. Available from: Taylor & Francis, Ltd. 530 Walnut Street Suite 850, Philadelphia, PA 19106. Tel: 800-354-1420; Tel: 215-625-8900; Fax: 215-207-0050; Web site: http://www.tandf.co.uk/journals
Publication Type: Journal Articles; Reports - Research
Education Level: Higher Education; Postsecondary Education
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A
Identifiers - Location: Trinidad and Tobago; Barbados; Antigua and Barbuda; Belize; Dominica; Guyana; Bahamas; Jamaica; Saint Vincent and the Grenadines; Saint Lucia; Grenada; Surinam
Grant or Contract Numbers: N/A