Introducing labour productivity changes into models used for economic impact analysis in tourism

Abstract

In tourism management, traditional input–output models are often applied to calculate economic impacts, including employment impacts. These models imply that increases in output are translated into proportional increases in labour, indicating constant labour productivity. In non-linear input–output (NLIO) models, final demand changes lead to substitution. This causes changes in labour productivity, even though one unit of labour ceteris paribus still produces the same output. Final demand changes can, however, also lead to employees working longer, harder and/or more efficiently. The goal of this article is to include this type of ‘real’ labour productivity change into an NLIO model. To do this, the authors introduce factor augmenting technical change (FATC) and a differentiation between core and peripheral labour. An NLIO model with and without FATC is used to calculate the regional economic impacts of a 10% final demand increase in tourism in the province of Zeeland in the Netherlands. Accounting for real productivity changes leads to smaller increase in the use of labour, as productivity increases allow output to be produced using fewer inputs.

Analisis produktivitas pariwisata: Studi kasus pada beberapa negara berdasarkan perbedaan karakter wilayah

“…Dibandingkan dengan industri lainnya, investasi publik sebelumnya dan strategi investasi swasta yang khusus untuk sektor pariwisata dapat menghasilkan hasil yang lebih efisien dalam hal produksi total dan penciptaan lapangan kerja. Dalam model inputoutput non-linear (NLIO), perubahan permintaan akhir dapat menyebabkan substitusi, sehingga menyebabkan perubahan dalam produktivitas tenaga kerja dan dapat mendorong karyawan untuk bekerja lebih lama, lebih keras, dan/atau lebih efisien (Klijs, Peerlings, & Heijman, 2017). Dengan mengintegrasikan perubahan "nyata" dalam produktivitas tenaga kerja ke dalam model NLIO serta memperkenalkan faktor tambahan perubahan teknis (factor augmenting technical change/FATC) dan membedakan antara tenaga kerja inti dan perifer, perubahan produktivitas yang sebenarnya menghasilkan peningkatan yang lebih kecil dalam penggunaan tenaga kerja, karena peningkatan produktivitas memungkinkan output yang sama dihasilkan dengan menggunakan input yang lebih sedikit.…”

Internet use and inverted U-shaped employment polarization in tourism occupations

“…It has been argued that there are two types of effects of technological progress on employment, the positive creation effect and the negative substitution effect (Wang et al, 2017). The substitution effect is manifested by the introduction of new technologies that replace labor and lead to an increase in unemployment (Acemoglu et al, 2014; Wei et al, 2013); the creation effect is manifested by the emergence of new technologies that generate new jobs and increase the demand for non-automated jobs, which in turn drives up employment (Hereendorf et al, 2013; Autor, 2015; Jeroen et al, 2017).…”

Drivers of Growth and Catch-up in the Tourism Sector of Industrialized Economies

“…As an element of managerial and strategic concern, quality improvement in products or services has also been identified as a determinant of labor productivity growth (Benavides-Chicón and Ortega 2014). Similarly, “final demand changes” as an exogenous market-based determinant are shown to increase labor productivity through the inducement of additional worker effort and efficiency (Klijs et al 2016). Additionally, in a study of the tourism sector in the United Kingdom, agglomeration effects (e.g., pooling of labor and spillover effects for knowledge) and firm-level clustering were shown to have mixed impacts on labor productivity; long-run effects were more significant than short-run effects (Y.…”