Human capital and gender dynamics in leadership: analysis of labor productivity and technical efficiency in Bangladesh, Indonesia, and Pakistan

This study examines the impact of human capital and gender dynamics in leadership on labor productivity and technical efficiency in firms from Bangladesh, Indonesia, and Pakistan. Using data from the World Bank Enterprise Survey, the analysis uses Ordinary Least Squares (OLS) regression, Data Envelopment Analysis (DEA), and Tobit regression techniques. The findings reveal significant variations in labor productivity and efficiency among firms in the three countries, influenced by factors such as firm characteristics, managerial experience, workforce skill composition, and gender leadership. The results indicate that higher average wages positively impact labor productivity and technical efficiency across all three countries, supporting the efficiency wage theory. The firm size shows varied impacts on performance, with medium-sized firms generally enhancing labor[YA1] productivity and technical efficiency, while the effects of large firms vary by country context. Older firms are more labor-productive and technically efficient, and highly skilled workers boost labor productivity in Bangladesh but have mixed effects in other countries. Female CEOs enhance labor productivity in Bangladesh but decrease it in Indonesia, while female managers significantly improve labor productivity in Pakistan. Innovation and R&D investments show diverse impacts, positively affecting labor productivity in Bangladesh and Indonesia but challenging in Indonesia. The study also highlights the need for policies to enhance human capital, foster gender-inclusive leadership, and encourage innovation to improve firm performance in developing economies.