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Figure 1 – U.S. Non-Farm Labor Productivity Growth, Four-Year Moving Average Source(s): U.S. Bureau of Labor Statistics.

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Presentation on theme: "Figure 1 – U.S. Non-Farm Labor Productivity Growth, Four-Year Moving Average Source(s): U.S. Bureau of Labor Statistics."— Presentation transcript:

1 Figure 1 – U.S. Non-Farm Labor Productivity Growth, Four-Year Moving Average Source(s): U.S. Bureau of Labor Statistics

2 Figure 2 – U.S. Manufacturing Labor Productivity Growth, Four-Year Moving Average

3 Subsector1993199920052014 Food16181513 Beverage and Tobacco Products14211621 Textile Mills76215 Textile Product Mills191352 Apparel34217 Leather and Allied Products622014 Wood Products20191410 Paper152093 Printing and Related Support Activities17 9 Petroleum and Coal Products9519 Chemical2114717 Plastics and Rubber Products871112 Nonmetallic Mineral Products1311124 Primary Metal410311 Fabricated Metal Products111618 Machinery181566 Computer and Electronic Products1111 Electrical Equipment, Appliance, and Component281316 Transportation Equipment5345 Furniture and Related Products12 108 Miscellaneous109820 Table 1 – Ranking by Four-Year Moving Average of Labor Productivity Growth Source(s): MAPI Foundation, U.S. Bureau of Labor Statistics

4 Figure 3 – Labor Productivity Growth in Select U.S. Manufacturing Subsectors, Four-Year Moving Average Source(s): U.S. Bureau of Labor Statistics

5 Year 1993199920052014 All Subsectors Top - Bottom11.423.812.66.4 Standard Deviation2.44.42.61.5 All Subsectors, Excluding Computer and Electronic Products Top - Bottom3.510.511.06.2 Standard Deviation1.02.12.21.4 Table 2 – Dispersion Measures of Labor Productivity Growth Across Manufacturing Subsectors, Percentage Points Source(s): MAPI Foundation and U.S. Bureau of Labor Statistics

6 Subsector1993199920052014 Food, Beverage, and Tobacco Products10171814 Textile Mills and Textile Product Mills94108 Apparel and Leather and Allied Products3121618 Wood Products17151710 Paper61069 Printing and Related Support Activities141122 Petroleum and Coal Products22713 Chemical1613 17 Plastics and Rubber Products83156 Nonmetallic Mineral Products7785 Primary Metal49916 Fabricated Metal Products1114117 Machinery1816411 Computer and Electronic Products1111 Electrical Equipment, Appliance, and Component1518512 Transportation Equipment13633 Furniture and Related Products58124 Miscellaneous1251415 Table 3 – Ranking by Four-Year Moving Average of Multifactor Productivity Growth Source(s): MAPI Foundation and U.S. Bureau of Labor Statistics

7 Subsector19741984199420042012 Food15 Beverage and Tobacco Products16 Textiles, Apparel, and Leather10 Wood Products13 12 11 Paper and Printing1211 12 Chemical43333 Plastics and Rubber Products66678 Nonmetallic Mineral Products99999 Primary Metal11121314 Fabricated Metal Products34456 Machinery11222 Computer and Electronic Products22111 Electrical Equipment, Appliance, and Component57765 Transportation Equipment88887 Furniture and Related Products14 13 Miscellaneous75544 Table 4 – Ranking by 10-Year Moving Average of Utility Patent Awards Source(s): MAPI Foundation and U.S. Patent and Trademark Office

8 Subsector1974198420042012 Food1100 Beverage and Tobacco Products0000 Textiles, Apparel, and Leather1211 Wood Products1111 Paper and Printing1111 Chemical1113119 Plastics and Rubber Products8864 Nonmetallic Mineral Products3322 Primary Metal1100 Fabricated Metal Products12 86 Machinery23201312 Computer and Electronic Products17183744 Electrical Equipment, Appliance, and Component8767 Transportation Equipment5545 Furniture and Related Products1111 Miscellaneous7898 Table 5 – Share of Total Manufacturing Utility Patent Awards Source(s): MAPI Foundation and U.S. Patent and Trademark Office

9 Subsector1993199920052013 Food, Beverage, and Tobacco Products1115126 Textile Mills and Textile Product Mills1610711 Apparel, Leather, and Allied Products51113 Wood Products18161716 Paper713105 Printing and Related Support Activities10844 Petroleum and Coal Products15141810 Chemical4451 Plastics and Rubber Products1469 Nonmetallic Mineral Products1718137 Primary Metal13171417 Fabricated Metal Products8121518 Machinery63168 Computer and Electronic Products1222 Electrical Equipment, Appliance, and Component27812 Transportation Equipment351115 Furniture and Related Products91169 Miscellaneous12933 Table 6 – Ranking by Four-Year Moving Average of Capital Intensity Growth Source(s): MAPI Foundation and U.S. Bureau of Labor Statistics

10 Subsector200020052013 Food121314 Beverage and Tobacco Products633 Textiles, Apparel, and Leather14119 Wood Products161516 Paper and Printing8910 Petroleum and Coal Products337 Chemical222 Plastics and Rubber Products1110 Nonmetallic Mineral Products101112 Primary Metal and Fabricated Metal Products1213 Machinery688 Computer and Electronic Products111 Electrical Equipment, Appliance, and Component976 Transportation Equipment564 Furniture15 Miscellaneous434 Table 7 – Ranking by Share of Workforce With a B.A. Degree or Higher Source(s): MAPI Foundation and U.S. Bureau of Labor Statistics

11 Subsector1973-992000-142010-14 Food12616 Beverage and Tobacco Products171119 Textile Mills182014 Textile Product Mills91815 Apparel2021 Leather and Allied Products211910 Wood Products14137 Paper111617 Printing and Related Support Activities41720 Petroleum and Coal Products16413 Chemical6718 Plastics and Rubber Products2105 Nonmetallic Mineral Products15129 Primary Metal1982 Fabricated Metal Products1396 Machinery853 Computer and Electronic Products114 Electrical Equipment, Appliance, and Component101411 Transportation Equipment531 Furniture and Related Products7158 Miscellaneous3212 Table 8 – Ranking by Average Annual Output Growth Source(s): MAPI Foundation and Federal Reserve Board

12 Independent Variable/ Subsector Patents Equipment Investment Equipment Investment (Lag 1) Constant Adjusted R 2 Durbin– Watson Computer and Electronic Products -0.0003 (-7.28)*** Lags = 4 -0.0018 (-0.08) Lags = 4 N/A 19.45 (13.54)*** 0.85 2.00 Machinery 0.00032 (1.22) 0.018 (2.50)** 0.012 (1.39) -3.62 (-1.04) 0.811.84 Transportation Equipment 0.00085 (1.97)* 0.033 (2.49)** N/A -3.28 (-1.76)* 0.481.83 Chemical 0.00037 (2.89)*** 0.0043 (0.46) N/A -3.94 (-3.03)*** 0.461.99 Fabricated Metal Products 0.00057 (1.70)* 0.022 (2.02)** N/A -4.42 (-1.71)* 0.511.53 Table 9 – Drivers of Multifactor Productivity Growth in Select Manufacturing Subsectors Dependent Variable: Four-Year Moving Average of Multifactor Productivity Growth Sample: 1992-2012, Annual data (t-statistics in parentheses) Source(s): MAPI Foundation Statistical Significance: ***1% level or less, **5% level or less but >1%, *10% level or less but >5%

13 Independent Variable/ Subsector Capital Intensity Educated Labor ConstantAdjusted R 2 Durbin– Watson Computer and Electronic Products -1.93 (-4.92)*** 7.32 (6.63)*** -6.18 (-2.26)** 0.69 0.77 Machinery -0.54 (-4.48)*** 1.32 (3.27)*** -0.61 (-0.40) 0.631.85 Transportation Equipment -0.63 (-3.60)*** 1.15 (2.00)* 0.89 (0.39) 0.211.92 Chemical -1.19 (-2.38)** 0.88 (1.84)* 5.11 (2.50)** 0.452.13 Fabricated Metal Products -0.36 (-3.14)*** 0.71 (2.68)** -0.84 (-0.77) 0.531.86 Table 10 – Drivers of Labor Productivity Growth in Select Manufacturing Subsectors Dependent Variable: Four-Year Moving Average of Labor Productivity Growth Sample: 1992-2013, Annual data (t-statistics in parentheses) Source(s): MAPI Foundation Statistical Significance: ***1% level or less, **5% level or less but >1%, *10% level or less but >5%

14 Independent Variable/ Subsector Patents Educated Labor ConstantAdjusted R 2 Durbin– Watson Computer and Electronic Products -0.00062 (-7.12)*** Lags = 2 1.18 (2.22)** Lags = 5 28.40 (7.53)*** 0.93 1.31 Machinery -0.00019 (-0.75) Lags = 3 0.68 (2.52)** Lags = 2 2.14 (0.63) 0.331.85 Transportation Equipment 0.00065 (1.63) Lags = 5 0.56 (1.99)* Lags = 2 -1.60 (-0.64) 0.141.82 Chemical -0.00019 (-1.67) Lags = 3 1.39 (8.88)*** Lags = 3 -2.29 (-1.99) 0.742.08 Fabricated Metal Products -0.00076 (-2.58)** Lags = 3 0.86 (4.64)*** Lags = 3 3.51 (1.77)* 0.521.30 Table 11 – Drivers of Labor Productivity Growth in Select Manufacturing Subsectors Dependent Variable: Four-Year Moving Average of Labor Productivity Growth Sample: 1992-2013, Annual data (t-statistics in parentheses) Source(s): MAPI Foundation Statistical Significance: ***=1% level or less, **5% level or less but >1%, *10% level but >5%

15 Figure 4 – Labor Force Participation Rate, Bachelor’s Degree and Higher, Ages 25+ Source(s): U.S. Bureau of Labor Statistics

16 Figure 5 – Labor Force Participation Rate, Ages 16+ Source(s): U.S. Bureau of Labor Statistics

17 Source(s): U.S. Bureau of Labor Statistics and MAPI Foundation Figure 6 – Number of Correlations of Subsector Labor Productivity Growth With Other Manufacturing Subsectors That Are at or Above 0.5

18 Independent Variable/ Subsector MachineryConstantAdjusted R 2 Durbin– Watson Computer and Electronic Products 0.78 (1.33) 8.88 (1.78)* 0.72 1.61 Transportation Equipment 0.55 (4.63)*** 0.60 (3.48)*** 0.481.41 Table 12 – One-Variable Specifications for Cross-Subsector Impacts of Multifactor Productivity Growth Dependent & Independent Variable: Four-Year Moving Average of Multifactor Productivity Growth Sample: 1992-2013, Annual data (t-statistics in parentheses) Source(s): MAPI Foundation Statistical Significance: ***1% level or less, **5% level or less but >1%, *10% level or less but >5%

19 Independent Variable/ Subsector Machinery Fabricated Metal Computer and Electronic Constant Adjusted R 2 Durbin– Watson MachineryN/A 0.72 (2.87)*** N/A 1.64 (2.10)** 0.521.54 Transportation Equipment 0.60 (3.57)*** N/A 1.90 (3.84)*** 0.351.67 Fabricated Metal ProductsN/A 0.11 (2.19)** 0.32 (0.48) 0.391.94 Table 13 – One-Variable Specifications for Cross-Subsector Impacts of Labor Productivity Growth Dependent & Independent Variable: Four-Year Moving Average of Labor Productivity Growth Sample: 1991-2013 annual data (t-statistics in parentheses) Source(s): MAPI Foundation Statistical Significance: ***1% level or less, **5% level or less but >1%, *10% level or less but >5%


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