EconPapers    
Economics at your fingertips  
 

On average establishment size across sectors and countries

Pedro Bento and Diego Restuccia ()

Journal of Monetary Economics, 2021, vol. 117, issue C, 220-242

Abstract: A new dataset for the average employment size of establishments across sectors and countries is constructed from hundreds of sources. Establishments are larger in manufacturing than in services and in each sector larger in richer countries. The cross-country income elasticity of establishment size is remarkably similar across sectors, about 0.3. A two-sector model with endogenous firm entry, firm-level productivity, and measures of the correlation of wedges with productivity across firms in the data can account for the entire range of establishment size differences and almost 50 percent of the difference in non-agricultural GDP per capita between rich and poor countries.

Keywords: Establishment-size; Services; Distortions; Productivity (search for similar items in EconPapers)
JEL-codes: E02 E1 O1 O4 O5 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0304393220300027
Full text for ScienceDirect subscribers only

Related works:
Working Paper: On Average Establishment Size across Sectors and Countries (2019) Downloads
Working Paper: On Average Establishment Size across Sectors and Countriesy (2018) Downloads
Working Paper: On Average Establishment Size across Sectors and Countries (2018) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:moneco:v:117:y:2021:i:c:p:220-242

DOI: 10.1016/j.jmoneco.2020.01.001

Access Statistics for this article

Journal of Monetary Economics is currently edited by R. G. King and C. I. Plosser

More articles in Journal of Monetary Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2021-07-08
Handle: RePEc:eee:moneco:v:117:y:2021:i:c:p:220-242