It is discussed that labor quality is an important aspect to be considered if an organization is planning to improve its productivity or to achieve economic growth. There have been many studies on this subject but it is observed that these studies used only the proxy variables to represent labor quality. However, it is observed by the authors that the indicators used in all these previous investigations did not incorporate many important aspects of labor quality such as the structural changes in the workforce, occupational safety, worker ethics, industrial relation etc. Therefore, it is attempted to employ a more comprehensive indicator of labor quality to study its impact on manufacturing quality. The Taiwanese manufacturing industry is used as an example to illustrate the proposed model that displays relationship between labor quality and productivity growth. (15 refs.)
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