Education and Labour Productivity

8/2/2019 Education and Labour Productivity

http://slidepdf.com/reader/full/education-and-labour-productivity 1/24

Education and Labour

Productivity

NOREEN M. MORALES

EDAD 202

Dr. Joel Javiniar (Professor)



Productivity

-is commonly defined as a ratio of avolume measure of output to a

measure of input use (OECD)

- is the rate of output per worker

(or a group of workers) per unit of

time as compared with an

established standard or expected

rate of output (businessdictionary.org)



Productivity is the ability to get

things done in a timely manner. It

presumes that action is taking place.

It means so much more than

dreaming, planning, or thinking.

Productivity is the ability to quickly

implement an idea into reality. Thetruth is nothing really happens until

someone does something.http://www.sophisticatededge.com/what-is-productivity.html

Productivity

http://www.sophisticatededge.com/what-is-productivity.html








Productivity

=Output

----------------Input



EDUCATION

http://www.adb.org/Documents/Produced-Under-TA/41040/41040-Human-Capital.pdf



Human Capital

Human capital is

regarded at the macrolevel as a key factor of production in the

economy-wideproduction function.(Son,2010)



At the micro level , human

capital is considered thecomponent of education that

contributes to an individual’s

labor productivity and earnings

while being an important

component of firm production.(Son, 2010)

Human Capital



-More educated individuals

tend to have higher employment rate and earnings

and produce more output

relative to those who are lesseducated.


EDUCATION

PRODUCTIVITY














• Policy makers in almost allcountries agree on one thing:

namely on the importance of education and skills to ensure future economic prosperity . Studiesshow that countries with higherlevels of education and skill, havean average higher levels ofproductivity and economic growth.

(Machinand

Vignoles,2005)

EDUCATION

PRODUCTIVITY



The increased productivity of

educated workers may increase

productivity of coworkers, and arise in the general education of

the labor force may increase the

potential for innovations and

adaptations leading to morelong-term efficiencies in the

workplace.

MingatandTan,1996

EDUCATION

PRODUCTIVITY



The Philippine

scenario

Summary of Tertiary Graduates byDiscipline Group and Academic Year

Employed Persons by Industry,Occupation, Class of worker, and Hours

Worked

Employed Persons by Sex, Age Groupand Highest Grade Completed



Household members are getting more

educated in the Philippines. Over the period1997-2003, the proportion of employed

household members who have secondaryand tertiary education has increased, whilethose who have acquired primary education

has declined.

(Son, 2010)

The Philippine

scenario



Ifmoreandmore

Filipinosaregettingeducated,howcometheeconomicgrowthofthecountryisnot

improving?



ThePhilippinescenario

This means that highereducation matters for employmentin the labor market, but the higher

educated labor force might betaking away the jobs that werepreviously held by the less

educated labor force, particularlyin the service sector which has contributed to declining labor

productivity in the country.(Son, 2008)

This means that higher

education matters for employment

in the labor market, but the higher

educated labor force might be

taking away the jobs that were

previously held by the less

educated labor force, particularly

in the service sector which hascontributed to declining labor

productivity in the country . (Son, 2008)



The Philippinescenario

There is evidence that with the risingeducation levels of labor force, collegegraduates have increasingly taken on

low-skilled work such as driving taxis,jeepneys, buses, and motorizedtricycles in the Philippines (ADO 2007). Itappears that a large proportion of the

highly educated workers are employedin jobs that do not match theireducational attainments, hence, thereis a mismatch between the labormarket and the educational sector.



EDUCATION

PRODUCTIVITY

Casual comparativeobservations in a number of

developing economies

confirm this statement:improvements in the

educational attainment of thelabor force DO NOT always

have a positive impact on therate of growth of output per

worker.(Pritchett, 1996)





Signaling theory (Spence),hypothesizes that

individuals acquireeducation merely to signalto potential employers thatthey have superiorproductivity, albeit educationitself does not necessarilyenhance productivity.

EDUCATION

PRODUCTIVITY



FACTORS CAUSING

LOW PRODUCTIVITY

Competence

Productivity Standards

Work Process

Team Management



FACTORS CAUSING

LOW PRODUCTIVITY

• Techniques

• Tools and Maintenance

• Salary

• Individual attitudinal, motivational, andbehavioral factors

(www.teambuildinginc.com/tps/005.htm, OECD Manual: Measuring Productivity; Measurement of Aggregate and Industry-LevelProductivity Growth, 2002)

http://www.teambuildinginc.com/tps/005.htm




How to IncreaseProductivity in the

Workplace

Time Management Skills

Productivity Checklist

Organize the work area



How to IncreaseProductivity in the

Workplace

Short cuts

Reward your employees

Get rid of time wasters

Review training methods



Thankyou!



1. Asian Development Outlook. (2007). Change Amid Growth, Asian Development Bank, Manila.

2. http://www.adb.org/Documents/Produced-Under-TA/41040/41040-Human-Capital.pdf

3. http://businessdictionary.org

4. http://www.dole.gov.ph/

5. http://www.nso.gov.ph/

6. http://www.oecd.org

7. http://www.sophisticatededge.com/what-is-productivity.html

8. http://www.teambuildinginc.com/tps/005.htm

9. Machin, S. and A. Vignoles . (2005). What’s the Good of Education?: The Economics of Education in the UK, Princeton

University Press: Princeton and Oxford.

10. Mingat , A. and Tan, J. (1996). The Full Social Returns to Education: Estimates Based on Countries’ Economic Growth

Performance. Human Capital Development Working Paper No. 73, The World Bank, Washington D.C.

11. OECD Manual: Measuring Productivity; Measurement of Aggregate and Industry-Level Productivity Growth, 2002

12. Pritchett, L. (1996). “Where has all the education gone?” World Bank Working Paper No. 581, The World Bank,

Washington D.C.

13. Son, H. 2008. Explaining Growth and Inequality in factor Income: The Philippine Case. ADB Economics Working Paper Series No. 227, Economics and Research Department, Asian Development Bank, Manila.

_________ 2010. Human Capital Development. ADB Economics Working Paper Series No.225, Economics and Research Department, Asian Development Bank, Manila

11. Spence, M. (1973). Job Market Signalling, Quarterly Journal of Economics, 87, pp. 355- 374.

References

http://businessdictionary.org/




http://www.oecd.org/






























