Product Diversification and Labor Productivity Dispersion in German Manufacturing Industries

René Söllner

No 2010-028, Jena Economics Research Papers from Friedrich-Schiller-University Jena

Abstract: Empirical research has shown tremendous productivity differences, even within narrowly defined industries. A great host of studies is explainsing this productivity disparity by factors such as idiosyncratic technology shocks, input price differences, management skills, or international trade. Although these explanations are undoubtedly important, the current paper suggests that product diversification strategies of firms can also play an important role. Using a matched producer-product panel dataset of German manufacturing industries over the period 2003-2006, we find that the average degree of product diversification across industry establishments is positively related to within-industry labor productivity dispersion.

Keywords: Product Diversification; Productivity; Industrial Dynamics (search for similar items in EconPapers)
JEL-codes: L11 L22 L25 (search for similar items in EconPapers)
Date: 2010-04-19
New Economics Papers: this item is included in nep-bec, nep-eff and nep-mic
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:jrp:jrpwrp:2010-028

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