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Labour productivity measurement with variable returns to scale in Australia's construction industry

Li, Yan and Liu, Chunlu 2012, Labour productivity measurement with variable returns to scale in Australia's construction industry, Architectural science review, vol. 55, no. 2, pp. 110-118.

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Title Labour productivity measurement with variable returns to scale in Australia's construction industry
Author(s) Li, Yan
Liu, Chunlu
Journal name Architectural science review
Volume number 55
Issue number 2
Start page 110
End page 118
Total pages 9
Publisher Earthscan
Place of publication London, England
Publication date 2012-05-01
ISSN 0003-8628
1758-9622
Keyword(s) Australia
construction industry
data envelopment analysis
labour productivity
performance characteristics
public policy
Summary As an important productivity indicator, the change of labour productivity is one indispensable marker in determining the rise or fall of overall industrial performance. This study aims to address whether the labour productivity level of the Australian construction industry has, in fact, shown a huge improvement during the last few decades. This article constructs a measuring method estimating labour productivity changes based on the data envelopment analysis technique with variable returns to scale. By adopting a production frontier approach, the labour productivity index can be broken down into components attributable to efficiency change, technological progress and capital accumulation. The numerical results exemplified by a single-input and single-output system indicate that the average annual labour productivity levels of the construction industry are slowly growing in all the Australian states and territories. However, the year-on-year change in the overall labour productivity performance does not maintain a long-term increase over the period 1990–2008. The study forms the basis for further industrial productivity research. Proposals and recommendations are expected to be beneficial for making policy and strategic decisions to improve the performance of the construction industry.
Language eng
Field of Research 120201 Building Construction Management and Project Planning
Socio Economic Objective 870503 Residential Building Management and Services
HERDC Research category C1 Refereed article in a scholarly journal
Copyright notice ©2012, Taylor & Francis
Persistent URL http://hdl.handle.net/10536/DRO/DU:30046888

Document type: Journal Article
Collection: School of Architecture and Built Environment
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Created: Mon, 13 Aug 2012, 12:38:25 EST