Productivity and Organization in Portuguese Firms

Lorenzo Caliendo, Giordano Mion, Luca David Opromolla and Esteban Rossi-Hansberg

Journal of Political Economy, 2020, vol. 128, issue 11, 4211 - 4257

Abstract: Using employer-employee matched and firm production quantity and input data for Portuguese firms, we study the endogenous response of productivity to firm reorganizations as measured by changes in the number of management layers. We show that, as a result of an exogenous demand or productivity shock that makes the firm reorganize and add a management layer, quantity-based productivity increases by about 6%, while revenue-based productivity drops by around 3%. Such a reorganization makes the firm more productive but also increases the quantity produced to an extent that lowers the price charged by the firm and, as a result, its revenue-based productivity as well.

Date: 2020
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Related works:
Working Paper: Productivity and Organization in Portuguese Firms (2019)
Working Paper: Productivity and Organization in Portuguese Firms (2016)
Working Paper: Productivity and Organization in Portuguese Firms (2015)
Working Paper: Productivity and Organization in Portuguese Firms (2015)
Working Paper: Productivity and Organization in Portuguese Firms (2015)
Working Paper: Productivity and organization in Portuguese firms (2015)
Working Paper: Productivity and Organization in Portuguese Firms (2015)
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