Sources of Labor Productivity Growth in the German Brewing Industry

Giannis Karagiannis, Magnus Kellermann and Klaus Salhofer

No DP-72-2019, Discussion Papers from University of Natural Resources and Life Sciences, Vienna, Department of Economics and Social Sciences, Institute for Sustainable Economic Development

Abstract: We decompose aggregate industry labor productivity growth into seven distinct components: input deepening, technical change, technical efficiency, scale effect, between-firm reallocation, effects from exits and entry. The first four components measure the productivity growth within a firm. The latter three components capture industry dynamics. Applied to a sample of 118 small and medium sized breweries in Germany over 13 years, we found that within-firm effects, in particular technical change and the scale effect, clearly dominated the effects from industry restructuring.

Keywords: labor productivity; productivity growth; structural change; brewing industry; Germany (search for similar items in EconPapers)
JEL-codes: D24 J24 L16 O12 (search for similar items in EconPapers)
Date: 2019
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