Cookies?
Library Header Image
LSE Research Online LSE Library Services

Productivity and organization in Portuguese firms

Caliendo, Lorenzo and Mion, Giordano and Opromolla, Luca David and Rossi-Hansberg, Esteban (2015) Productivity and organization in Portuguese firms. CEP Discussion Paper, 1397. London School of Economics and Political Science, CEP, London, UK.

[img]
Preview
PDF - Published Version
Download (546kB) | Preview

Identification Number: 1397

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.

Item Type: Monograph (Discussion Paper)
Official URL: http://cep.lse.ac.uk/
Additional Information: © 2015 The Authors
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HN Social history and conditions. Social problems. Social reform
Sets: Research centres and groups > Centre for Economic Performance (CEP)
Date Deposited: 13 Apr 2016 09:12
Last Modified: 13 Apr 2016 09:12
Funders: Economic and Social Research Council
URI: http://eprints.lse.ac.uk/id/eprint/66062

Actions (login required)

View Item View Item

Downloads

Downloads per month over past year

View more statistics