On average establishment size across sectors and countries
Pedro Bento and
Diego Restuccia ()
Journal of Monetary Economics, 2021, vol. 117, issue C, 220-242
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: O1 O4 O5 E02 E1 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
Working Paper: On Average Establishment Size across Sectors and Countries (2019)
Working Paper: On Average Establishment Size across Sectors and Countriesy (2018)
Working Paper: On Average Establishment Size across Sectors and Countries (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:moneco:v:117:y:2021:i:c:p:220-242
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 Nithya Sathishkumar ().