Productivity as a Determinant of Labour Wage in New Zealand’s Construction Sector

Öztürk, Mustafa; Durdyev, Serdar; Aras, Osman Nuri; Banaitis, Audrius

doi:10.3846/tede.2019.10297

Cited by 14 publications

(9 citation statements)

References 34 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Total Payroll Employee population (8) Market structure: The intensity of competition within an industry is measured with the Herfindahl-Hirschman Index (HHI), which is a threshold variable in the empirical study. HHI is measured by the percentages of market competition subjects in an industry over the total shares of the industry.…”

Section: Labor Cost =mentioning

confidence: 99%

See 1 more Smart Citation

Labor Costs, Market Environment and Green Technological Innovation: Evidence from High-Pollution Firms

Gong

Chen

et al. 2020

IJERPH

View full text Add to dashboard Cite

Emerging economies face the challenge of increasing labor costs but also provide an opportunity to promote environmental governance and green development. Based on the perspectives of impetus and capability, the effects of rising labor costs and market environment on green technological innovation are investigated in this study. The empirical studies used the data of high-pollution firms in China from 2009 to 2018. Results demonstrate that rising labor costs deteriorates high-pollution firm performance, while highly competitive industries are affected more than other industries. Meanwhile, the influence of rising labor costs on green technological innovation has a threshold effect which illustrates an “inversely U-shaped” variation trend with the increase of degree of market monopoly. The labor costs will make biggest impact on the green technological innovation in the moderately concentrated market environment. Basing from these results, this study provides the following suggestions for emerging economies’ green development: Take rising labor cost as an opportunity to advance technological progress to the green direction, establish a sound market competition environment, and develop green finance to reduce the financing constraints of green technological innovation.

show abstract

Section: Labor Cost =mentioning

confidence: 99%

“…On the one hand, the rise of the production cost may bring a significant pressure on firms' development [7]. The production costs of firms may increase if the wage growth is not attributed to an improvement in productivity [8]. Thus, firms may encounter difficulties against further development [9].…”

Section: Introductionmentioning

confidence: 99%

Labor Costs, Market Environment and Green Technological Innovation: Evidence from High-Pollution Firms

Gong

Chen

et al. 2020

IJERPH

View full text Add to dashboard Cite

show abstract

“…Despite the advanced construction technology that has been used for various purposes in the construction industry (Cho et al, 2018), the industry continues to rely on skills, experience and competence of employees it has, also, has recruited for various purposes (Troje and Kadefors, 2018). For example, in one of the recent studies (Durdyev et al, 2018b), it is reported that the construction worker's (regardless of the level or status of employment) skill, experience and competence have a direct impact on overall project productivity performance (Durdyev and Mbachu, 2011), which eventually affects the national level (Ozturk et al, 2019). Having this factor among the most causative ones is therefore not a surprise, as it has been reported by several studies that there is a direct relationship between construction productivity and project cost performance (Haugbølle et al, 2019).…”

Section: Stakeholders' Skill Experience and Competencementioning

confidence: 99%

Review of construction journals on causes of project cost overruns

Durdyev

2020

ECAM

Self Cite

View full text Add to dashboard Cite

PurposeThe study investigates the causes of project cost overruns (COs) that have been reported in the construction-management-related articles since 1985.Design/methodology/approachTo achieve the aim and provide recommendations to avoid project COs, 48 selected journal articles were reviewed and assessed with regard to the countries, institutions and researchers that have contributed to the subject.FindingsThe review of the articles shows that the subject has attracted a considerable attention from the researchers worldwide. However, the problem mainly occurred in developing countries and the researchers drew the attention on the resource-related, economic/financial as well as political problems. While 79 causes of COs were identified, the top ten causes of project COs, which have received the highest number of citations by the reviewed articles, were presented and discussed. These causes are: design problems and incomplete design, inaccurate estimation, poor planning, weather, poor communication, stakeholder's skill, experience and competence, financial problems/poor financial management, price fluctuations, contract management issues and ground/soil conditions.Research limitations/implicationsThe study findings have several implications, which are not only for the academic world, but also for the construction front line. For scholars, the study provides a list of project COs that the researchers in the area could benefit for their future studies. The industry practitioners could find ways to improve project cost performance by giving attention to the causative factors that are significantly affecting construction projects and investing their resources and efforts towards the most occurred ones.Originality/valueThus, this study provides insight into the research output on the subject and a checklist of COs, which is believed to provide a better understanding of significant areas requiring attention where steps should be taken to minimize or control factors causing COs in construction projects.

show abstract

“…Several studies in the literature have reported strong association of economic growth with productivity (Ozturk et al, 2019). Park et al (2005) point out the importance of improvement in the industry productivity which will bring an economic success for companies aiming to survive in the competitive industry environment.…”

Section: Review Of the Literaturementioning

confidence: 99%

“…Thus, the effect of LW on LP and their relationship have widely been reported worldwide. In the most recent study, which is one of the points of departure for the present study, Ozturk et al (2019) reported an empirical assessment of the relationship between RW and LP in the construction sector based on data between 1983 and 2017. They concluded that the LP positively impacts the LW, while the UNP shows negatives effect in the long run.…”

Section: Review Of the Literaturementioning

confidence: 99%

How Effective Are Labor Wages on Labor Productivity?: An Empirical Investigation on the Construction Industry of New Zealand

Öztürk¹,

Durdyev

Aras

et al. 2020

Technological and Economic Development of Economy

Self Cite

View full text Add to dashboard Cite

This study empirically investigates (for the period of 1983-2017) the relationships between the parameters (labour wage (LW), labour productivity (LP) and unemployment (UNM) rate) of the construction sector in New Zealand. This study employs the Johansen co-integration test to determine if the relationship in the long run does exist among the investigated variables as well as to assess the relationships. The results show that the LW has a positive effect on the LP, while the UNM affects negatively, which indicates that the higher salary, the more productive labour. In other words, increase in salary stimulates the belief of the workforce that they are substantially paid for their work, which ultimately increases their trust and loyalty to the employer; hence, productivity. Moreover, the results show adverse effect of UNM on LP, which indicates that labours may also lose his/her productivity due to fear of losing his/her job. The model stability is verified by Histogram Normality Test, Breusch-Godfrey Serial Correlation, Heteroscedasticity Breusch-Pagan-Godfrey tests. Thus, the forefront of the construction sector is recommended to consider the empirical relationships determined in this study in order to improve the productivity level at various levels.

show abstract

Productivity as a Determinant of Labour Wage in New Zealand’s Construction Sector

Cited by 14 publications

References 34 publications

Labor Costs, Market Environment and Green Technological Innovation: Evidence from High-Pollution Firms

Labor Costs, Market Environment and Green Technological Innovation: Evidence from High-Pollution Firms

Review of construction journals on causes of project cost overruns

How Effective Are Labor Wages on Labor Productivity?: An Empirical Investigation on the Construction Industry of New Zealand

Contact Info

Product

Resources

About