A Study on the Effect of Employment Type on the Productivity of Wholesale and Retail Industry

This study examines the impact of employment types on productivity in the wholesale and retail industries, where the use of non-regular workers is a common cost-saving strategy. Companies increasingly rely on non-regular employees to reduce labor costs and respond flexibly to market uncertainties, such as fluctuating demand and economic crises. However, this practice has led to social issues, including lower wages, unstable employment, and insufficient social protection for non-regular workers. While much research has focused on other sectors, studies on employment patterns in wholesale and retail remain limited, despite a high proportion of non-regular workers in these industries. Using the Malmquist productivity index, the study analyzed productivity trends among 53 wholesale and retail firms from 2018 to 2020. Tobit regression analysis was employed to assess how different employment types affect productivity. The results reveal that wholesale and retail industries lag in technological advancement and that regular employment can negatively impact productivity in retail. To address these challenges, the study recommends investing in technological innovations such as inventory automation and logistics optimization. It also suggests balancing regular and non-regular employment through incentives, automation, performance-based contracts, flexible work arrangements, and training, aiming to enhance both productivity and workforce stability.