Progress of Theoretical Physics Supplement No. 179, 2009 93 International Comparison of Labor Productivity Distribution for Manufacturing and Non-Manufacturing Firms

Labor productivity was studied at the microscopic level in terms of distributions based on individual firm financial data from Japan and the US. A power-law distribution in terms of firms and sector productivity was found in both countries ’ data. The labor productivities were not equal for nation and sectors, in contrast to the prevailing view in the field of economics. It was found that the low productivity of the Japanese non-manufacturing sector reported in macro-economic studies was due to the low productivity of small firms. The Japanese non-manufacturing sector, which is the service sector in the ex-tended sense of the meaning, was reported to have low productivity in economic studies.1),2) Many researchers have cited low productivity as a serious problem of the Japanese economy. For this reason, policy makers, business administrators, an