Production Hierarchies in Sweden

Joacim Tåg

No 963, Working Paper Series from Research Institute of Industrial Economics

Abstract: I study the internal organization of firms using occupation data on workers in Swedish manufacturing firms. Firms with more layers are larger in size, in value added, and they pay higher wages. Firms are hierarchal in that lower layers have more workers and lower mean wage than higher layers. Adding layers is associated with increases in mean firm size/value added and decreases in mean firm wages (at pre-existing layers). The reverse holds for removing layers. This result also holds for layer by layer mean size and wages for a majority of pre-existing layers.

Keywords: Hierarchies; Organizations; Occupations; Wages; Productivity (search for similar items in EconPapers)
JEL-codes: D22 D24 J31 (search for similar items in EconPapers)
Pages: 9 pages
Date: 2013-03-19
New Economics Papers: this item is included in nep-bec and nep-eff
References: View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Published as Tåg, Joacim, 'Production Hierarchies in Sweden' in Economics Letters, 2013, pages 210-213.

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Journal Article: Production hierarchies in Sweden (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:iuiwop:0963

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