Labour productivity is often discussed in economic literature, yet productivity studies in wholesaling are rare. On the whole, wholesaling is a neglected area of research in contrast with its important position in the distribution channel. Our analysis of labour productivity in wholesaling makes use of a labour-cost relationship — originally developed for retailing — to study differences in labour productivity across wholesale business types. For this purpose, averaged data are used of 61 German wholesale types for the 7-year period, 1979 through 1985. The labour-output relationship is estimated applying a pooled, an error-component and a variable-intercept model. Also, heteroskedasticity is considered.