Analyzing the Effects of Geographical Concentration of Industry and the Distribution of Educational Level of Employees on Labor Productivity (in Terms of the Food and Beverage Subsectors)

This study is an attempt to identify the persistent obstacles in improving labor productivity path and to give insight to policymakers into the food and beverage industry and related industries about the geographic concentration of industry, educational distribution of employees, and their relationships with labor productivity. For this purpose, a panel data model is applied for explaining labor productivity in the food and beverage industry over the period 2000- 2014. In addition, motivational indices (wage per worker), per capita capital stock and physical capital management index (the number of private and public firms) are used as explanatory variables. The results suggest that improvement in labor productivity in food and beverage industry sub-sectors requires reducing educational dispersion of the labor force by employing high-educated workers, increasing geographical concentration, improving incentive system by determining appropriate wage, and enhancing management through reducing state ownership of industrial firms.