Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/128375
Authors: 
Caliendo, Lorenzo
Mion, Giordano
Opromolla, Luca David
Rossi-Hansberg, Esteban
Year of Publication: 
2015
Series/Report no.: 
CESifo Working Paper 5678
Abstract: 
The productivity of firms is, at least partly, determined by a firm’s actions and decisions. One of these decisions involves the organization of production in terms of the number of layers of management the firm decides to employ. Using detailed employer-employee matched data and firm production quantity and input data for Portuguese firms, we study the endogenous response of revenue-based and quantity-based productivity to a change in layers: a firm reorganization. We show that as a result of an exogenous demand or productivity shock that makes the firm reorganize and add a management layer, quantity based productivity increases by about 4%, while revenue-based productivity drops by more than 4%. Such a reorganization makes the firm more productive, but also increases the quantity produced to an extent that lowers the price charged by the firm and, as a result, its revenue-based productivity.
JEL: 
D22
D24
L23
F16
J24
J31
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.