Economics & Sociology

ISSN: 2071-789X eISSN: 2306-3459 DOI: 10.14254/2071-789X
Index PUBMS: f5512f57-a601-11e7-8f0e-080027f4daa0
Article information
Title: Determinants of Labour Productivity in Malta: Evidence from a Firm-Level Survey
Issue: Vol. 9, No 4, 2016
Published date: 12-2016 (print) / 12-2016 (online)
Journal: Economics & Sociology
ISSN: 2071-789X, eISSN: 2306-3459
Authors: Brian Micallef
Keywords: productivity, firm survey, Malta
DOI: 10.14254/2071-789X.2016/9-4/2
Index PUBMS: 0fb2450f-0209-11e8-94c4-fa163e5d4f72
Language: English
Pages: 27-40 (14)
JEL classification: D24, E24, J24, O47

Labour productivity in Malta has been sluggish after the crisis. This study looks at the determinants of productivity in Malta by exploiting information from a unique firm-level survey using an empirical multivariate framework. Labour productivity is more likely to be lower in firms with a higher labour share, suggesting that the significant shift towards labourintensive services observed in recent years is likely to be an important driver behind the slowdown in productivity. Outsourcing and the characteristics of the workforce are also important determinants. On the contrary, credit constrained firms and those hit by adverse demand conditions are less likely to experience an improvement in productivity.