Determinants of Labour Efficiency in Nigeria: A Cross Company Study of Manufacturing Firms

Abstract

One great challenge facing the millennium manager in the present competitive business atmosphere is to determine how to make the workforce more efficient. Sequel to this, this study tries to identify factors that determine the efficiency of labour in Nigeria. It applied Ordinary Least Squares (OLS) on a log-linear multiple regression models specified for the purpose of this investigation. The paneled cross-company data is sort from the annual reports and accounts, as well as, from interviews with personnel managers of selected manufacturing firms. The analyses revealed that wage and educational attainment are more than any other factors, the determinants of labour efficiency in Nigeria. The study suggests that manufacturing companies should pay their workers efficient-wages and encourage them to acquire more knowledge through study leaves, seminars and both domestic and oversea trainings.

Keywords: labour efficiency, labour productivity, efficiency- wages