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Productivity and organization in Portuguese firms
journal contribution
posted on 2023-06-09, 20:45 authored by Lorenzo Caliendo, Giordano Mion, Luca David Opromolla, Esteban Rossi-HansbergUsing employer-employee matched and firm production quantity and input data for Portuguese firms, we study the endogenous response of productivity to firm reorganizations as measured by changes in the number of management layers. 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 6%, while revenue-based productivity drops by around 3%. 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 as well.
History
Publication status
- Published
File Version
- Accepted version
Journal
Journal of Political EconomyISSN
0022-3808Publisher
University of Chicago PressExternal DOI
Issue
11Volume
128Page range
4211-4257Department affiliated with
- Economics Publications
Full text available
- Yes
Peer reviewed?
- Yes
Legacy Posted Date
2020-03-03First Open Access (FOA) Date
2021-06-26First Compliant Deposit (FCD) Date
2020-03-03Usage metrics
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