Research Questions 1. What is the impact of education on the labor productivity? 2. What is the impact of health on labor productivity 3. What is the impact of a countrys unemployment to its labor productivity? 4. What is the impact of trade openness on the labor productivity? 5. How does the four specified determinants of labor productivity affect the five selected ASEAN countries? Research Simulacrum P2 P1 P3 P4 Propositions Proposition1: More mean years of schooling leads to an increased labor productivity. (Chansarn, 2010; Umoru & Yaqub, 2013; Barro & Lee, 2013; Qaiser & Foreman-Peck, 2007; Bloom et. al., 2003; Bol & Wernfhorst, 2010)
Proposition2: Higher life expectancy at birth leads to an increased labor productivity. (Acemoglu & Johnson, 2007; Bloom et. al, 2003; Chakraborty, 2004; Kunze, 2014; Lorentzen, McMillan and Wacziarg, 2008; Rivera & Currais, 2004) Propositions Proposition 3: Lower unemployment rates lead to increased labor productivity. (Coen & Hickman, 2006; Huang & Lin, 2008; Malley & Molana, 2008; Villaverde & Maza, 2009)
Proposition 4: Wider trade openness leads to increased labor productivity. (Cassiman et al., 2010; Bernard & Jensen, 2004; Wong, 2009; Helpman et.al, 2004; Yasar and Paul, 2006)
Defining Conceptual Tags
1. Mean Years of Schooling- average number of years in educational attainment an adult has taken up in a given year
2. Life Expectancy- measurement of the longevity of the laborers capacity to work
3. Unemployment Rate- ratio of the number of unemployed persons in a countrys workforce
4. Trade Openness the broadness or size of imports and exports trading in a countrys economy
5. Labor Productivity a countrys measurement for economic growth; quantified by the rate of output per worker Research Method The econometric model used to determine the relationship among the set of explanatory variables and the dependent variable was adapted from the works of Chansarn (2010), Tripier (2006), and Wong (2009).