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This paper aims to examine the factors of growth of a developing country such as China. Because of the existence of domestic distortions, the traditional approach of using the growth of gross domestic product (GDP) to represent economic growth of the economy is not appropriate. This paper seeks to estimate how a change in resource misallocation may affect the measured growth rate of GDP.

Using provincial data for four southern provinces of China for the years from 2000 to 2004, the paper considers two hypothetical cases, one in which labor allocation is fixed, and one in which labor allocation is assumed to be optimal both before and after growth. The growth factors for GDP in these two hypothetical cases are compared with the observed growth factors.

This paper argues that the growth rate of GDP has overestimated the growth rate of the economy in this period. It can thus be said that the degree of the distortion caused labor misallocation decreases over time in this period.

Because of limitations of data, this study treats each province as one sector, producing one homogeneous product, although the same methodology can be applied to more than one sector in each province. Furthermore, the present work assumes constant external prices.

The present study shows the importance of removing distortions in the economy, and how an improvement in the efficiency may raise the GDP of the economy.

The methodology and approach introduced here are quite new and are useful in assessing the implications of distortions on production and welfare.

We investigate the positive and normative consequences of child-labor restrictions for economic aggregates and welfare. We argue that even though the laissez-faire outcome may be inefficient, there are usually better policies to cure these inefficiencies than the imposition of a child-labor ban. Given this finding, we investigate the potential political-economic reasons behind the emergence and persistence of child-labor legislation. Our investigation is based on a structural dynamic general equilibrium model that provides a coherent and uniform framework for our analysis.

Credit is central in labour allocation decisions in smallholder agriculture in developing countries. The purpose of this paper is to analyse the effect of credit constraints on farm households’ labour allocation decisions in rural Burkina Faso.

The study used a direct elicitation approach of credit constraints and applied a farm household model to categorize households into four labour market participation regimes. A joint estimation of both the multinomial logit model and probit model was applied on survey data from Burkina Faso to assess the effect of credit constraint on the probability of choosing one of the four alternatives.

The results of the probit model showed that households’ endowment of livestock, access to news, and membership to an farmer-based organization were factors lowering the probability of being credit constrained in rural Burkina Faso. The multinomial logit model results showed that credit constraints negatively influenced the likelihood of a farm household to use hired labour in agricultural production and perhaps more importantly it induces farm households to hire out labour off farm. The results also showed that the other components of household characteristics and farm attributes are important factors determining the relative probability of selecting a particular labour market participation regime.

Facilitating access to credit in rural Burkina Faso can encourage farm households to use hired labour in agricultural production and thereby positively impacting farm productivity and relieving unemployment pressures.

In order to identify the effect of credit constraints on farm households’ labour decisions, this study examined farm households’ decisions of hiring on-farm labour, supplying labour off-farm or simultaneously hiring on-farm labour and supplying family labour off-farm under credit constraints using the direct elicitation approach of credit constraints. To the best of the authors’ knowledge, this study is the first to examine this problem in Burkina Faso.

This chapter analyzes changes in the allocation of child labor within the household in reaction to exogenous shocks created by a social program in Nicaragua. The chapter shows that households that randomly received a conditional cash transfer (CCT) compensated for some of the intra-household differences, as they reduce child labor more for older boys who used to work more and for boys who were further behind in school. The results also show that households that randomly received a productive investment grant targeted at women, in addition to the basic CCT benefits, show an increased specialization of older girls in nonagricultural and domestic work, but no overall increase in girls’ child labor. The findings suggest that time allocation and specialization patterns in child labor within the household are important factors to understand the impact of a social program.

This research is aimed to mainly be applicable to expediting engineering projects, uses the method of inverse optimization and the double-layer nested genetic algorithm combined with nonlinear programming algorithm, study how to schedule the number of labor in each process at the minimum cost to achieve an extremely short construction period goal.

The method of inverse optimization is mainly used in this study. In the first phase, establish a positive optimization model, according to the existing labor constraints, aiming at the shortest construction period. In the second phase, under the condition that the expected shortest construction period is known, on the basis of the positive optimization model, the inverse optimization method is used to establish the inverse optimization model aiming at the minimum change of the number of workers, and finally the optimal labor allocation scheme that meets the conditions is obtained. Finally, use algorithm to solve and prove with a case.

The case study shows that this method can effectively achieve the extremely short duration goal of the engineering project at the minimum cost, and provide the basis for the decision-making of the engineering project.

The contribution of this paper to the existing knowledge is to carry out a preliminary study on the relatively blank field of the current engineering project with a very short construction period, and provide a path for the vast number of engineering projects with strict requirements on the construction period to achieve a very short construction period, and apply the inverse optimization method to the engineering field. Furthermore, a double-nested genetic algorithm and nonlinear programming algorithm are designed. It can effectively solve various optimization problems.

The effect of increased uncertainty on the agent's allocation decision is an intriguing general question and has recently received some systematic attention in the literature. Sandmo has analyzed the effect of savings rate uncertainty on the savings decision and both he and Leland have explored the effect of “income uncertainty” on the same decision. In addition, Leland has investigated the effects of uncertainty on optimal foreign exchange positions and both authors, Leland and Sandmo have begun an exploration of the effects of uncertain demand on the firm's output decision. Finally, Block and Heineke have analyzed the effect of income, savings rate, and wage uncertainty on the agent's labour allocation. However, in all of this work there has not been a geometric treatment of even a restricted case. The purpose of this note is to develop such an analysis for a special, but interesting labour allocation problem, and thereby derive the results of income uncertainty in a transparent fashion.

The purpose of this paper is to assess different labor hiring policies for construction projects using system dynamics (SD) which have a considerable impact on project performance. Time intervals and work crew composition are two such policies. Through the implementation of a variety of policies, a managerial opportunity presents itself for the effective allocation of human resources and improvement in project performance.

The study developed a dynamic model to assess different labor hiring policies using SD based on literature. To further distinguish between findings, the effects of the applied policies on performance were considered using earned value management. Based on a real case for validating the model, the paper discusses the potential benefits of the model, including: having a systematic and holistic view, considering dynamic the labor need and allocation, identifying alternative strategies for performance improvement and simulating the reality of the projects in a virtual model.

The achieved simulation results show how different hiring policies affect project performance. This research model can aid decision makers to assess labor hiring policies in various time intervals with different compositions and assist them in selecting the best policies for effective implementation of project.

The proposed model would be a major attempt using SD to model labor hiring policies more accurate in construction projects performance. In fact, an accurate estimate of labor needed, along with the proper planning and implementing of various labor hiring policies, presents a managerial opportunity whereby the effective allocation of workforces can be optimized leading to drastic improvement in project performance.

Multi‐skilled labour allocation in a defined time frame falls into the class of non‐polynomial (NP) hard problems, solutions to which can only be obtained through repeated trials and errors. The application of fuzzy genetic algorithms (GA) optimisation model provides an efficient way to arrive at a “near‐optimal” solution. In this paper, a fuzzy GA optimisation model of labour allocation is presented to illustrate how the near optimal solution can be obtained.

This research identifies the level of labor misallocation in Vietnamese manufacturing sector for the period 2005–2019. The paper also examines the effects of labor misallocation on productivity in Vietnamese manufacturing firms controlled by industry- and firm-level factors.

The level of labor misallocation and efficiency gains in total factor productivity (TFP) are assessed using Vietnam's annual enterprise survey data for the period 2005–2019 and Hsieh and Klenow (2009) productivity decomposition framework.

The results indicate four main points. Firstly, labor misallocation tends to increase from 2005 to 2019. Secondly, labor misallocation by firm ownership and technology level is found to be highest in state-owned enterprise and low-tech industries, whereas foreign direct investment and high-tech firms have lowest labor misallocation. Labor misallocation in small- and medium-sized enterprises is higher than in large-sized enterprises and is equivalent to overall sample. Thirdly, labor misallocation decreases productivity in manufacturing firms. The firm-level factors such as bigger technology gap, external capital, firm scale and poor liquidity ratio decrease productivity in manufacturing firms. Whereas firm-level factors such as Vietnam's accession to the WTO, reasonable corporate tax structure, capital intensity, human capital and firm age increase productivity of manufacturing firms. The industry-level factors such as FDI horizontal, forward and supply backward spillovers promote productivity from foreign firms to domestic ones. Meanwhile, only backward linkages reduce productivity of firms. Finally, by difference-in-differences (DID) method, the result indicates foreign firms have higher average labor productivity than domestic firms before or after Vietnam's accession to the WTO. After joining WTO, the average labor productivity of foreign firms is increased by 854 million VND while the average labor productivity of domestic firms is increased by 895 million VND. The DID between the two groups (domestic firms and foreign firms) before and after Vietnam's accession to WTO is 41 million dong.

The main limitation of the study is that the market is assumed perfectly competitive. The model focuses on selective factors affecting labor productivity.

The focus of many previous international research papers was generally to look at the level of labor misallocation in developed countries. However, knowledge about labor misallocation is limited, particularly in the context of developing countries. This paper examines the level of labor misallocation by region, ownership, level of technology and firm size on productivity and the effect of misallocation on productivity in Vietnamese manufacturing firms.

The peer-review history for this article is available at: https://publons.com/publon/10.1108/IJSE-09-2021-0552.