A positive analysis on labor productivity of China' s construction industry

The factors that affect labor productivity are measured by the statistical data available. Others such as the growth of macro-economy and employees' quality are qualitative analyzed. Using C-D production function as a tool, the impaction of innovation and the equipment-to-capital ratio on labor productivity is analyzed. The relationship between wage level and labor productivity is quantitatively founded by means of a linear regression. The results show that labor productivity of construction industry is consistent with the fluctuate of China s macro-economy. Technology innovation makes main contribution to improvement of the labor productivity , but qualities of employees of China s construction industry demand to improve urgently, Technology innovation and the improvement of labor's qualities are the key factors to increase the labor productivity and the benefit of China s construction industry. With labor productivity having a higher elasticity on wage, the enhancement of the salary has pushed forward the advance of labor productivity. Wage level is also an effective incentive means to improve labor productivity.