Labor Intensive

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Labor Intensive

Describing an industry or sector in which it is difficult to produce a good or service without a large amount of labor. Labor intensive industries require either a large number of employees or a large number of hours worked by employees, or both, in order to be successful. Labor intensity may be quantified by taking a ratio of the cost of labor (i.e. wages and salaries) as a proportion of the total capital cost of producing the good or service. The higher the ratio, the higher the labor intensity. Labor intensive industries may control costs in bad economies by laying off workers. Examples of labor intensive industries include agriculture, mining, and hospitality.
References in periodicals archive ?
The foregoing discussion suggests that under monopsonistic conditions a minimum wage may increase the labor intensity of production and firm-level employment.
L] curve to shift rightward as the price of output increases (on the other hand, any increased labor intensity of production will work to reduce the marginal productivity of labor, thereby restraining this rightward shift).
However that may be, we have shown that in terms of long run equilibrium analysis the alternative to the competitive model mentioned by CK is completely consistent with the observations that a binding minimum wage increases the labor intensity of production, employment by the firm, and (perhaps) employment by the industry, while increasing LAC for any given output, reducing industry output and increasing output price.
Absolute reductions in labor intensity per discharge were the product of even more substantial declines in medical-surgical LOS.
For surgery, as elsewhere, the primary cause of the reduction in 1984-85 was lower wage inflation, although negative labor intensity trends (column 3) also played a part (as they did in diagnostic and therapeutic radiology, catheter and pathology labs, physical therapy, and hemodialysis).
Labor intensity trends column 3), of course, do reflect the net effects of case mix via productivity and intensity.
Our forecasts build on the analyses described earlier in this article, and take into account three important variables affecting the wood products industry--timber ownerships, log prices, and labor intensity.
Labor Intensity: Harvest declines may be somewhat offset by changes in the labor intensity of timber processing.
Our estimates of the employment impacts associated with various timber supply scenarios are based on labor intensity ratios that existed from 1986 to 1991.
Fitch believed that labor-intensive manufacturers in China will try to mitigate wage increases by reducing their labor intensity or by moving their operations to places with lower wages.
The earliest theoretical work on efficiency wages by Shapiro and Stiglitz [23] and Bowles [3] contends that competitive firms may rationally pay wages greater than workers' opportunity costs if labor intensity is a positive function of wages.
5) He then goes on to argue that if firms face different internal costs of generating labor intensity, then they will be found to pay different wages for workers of identical characteristics.