Heterogeneity in the productivity of French construction firms: A multilevel analysis

Abdoulaye Kané and Nadine Levratto

No 2025-19, EconomiX Working Papers from University of Paris Nanterre, EconomiX

Abstract: This paper investigates how local factors at the local and firm levels affect French construction firms' productivity (labour productivity and total factor productivity). We use a multilevel model to disentangle firm-specific and location-specific effects. The results cover the period 2009-2019 and confirm the importance of firm-specific determinants of productivity, mainly age and size. Our results also emphasise the influence of location and local characteristics. We find that the local unemployment rate hurts productivity, and our results bring some evidence of the existence of positive external agglomeration effects. These results remain robust to analysis by company size.

Keywords: French construction firms; Heterogeneity of productivity; Localisation Factors; Multilevel Models (search for similar items in EconPapers)
JEL-codes: C31 D24 L74 R15 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:drm:wpaper:2025-19

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