Productivity and Organization in Portuguese Firms

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

No 5678, CESifo Working Paper Series from CESifo

Abstract: The productivity of firms is, at least partly, determined by a firm’s actions and decisions. One of these decisions involves the organization of production in terms of the number of layers of management the firm decides to employ. Using detailed employer-employee matched data and firm production quantity and input data for Portuguese firms, we study the endogenous response of revenue-based and quantity-based productivity to a change in layers: a firm reorganization. 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 8%, while revenue-based productivity drops by around 7%. 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.

JEL-codes: D22 D24 F16 J24 J31 L23 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

Downloads: (external link)
https://www.cesifo.org/DocDL/cesifo1_wp5678.pdf (application/pdf)

Related works:
Journal Article: Productivity and Organization in Portuguese Firms (2020)
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)
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:ces:ceswps:_5678

Access Statistics for this paper

More papers in CESifo Working Paper Series from CESifo Contact information at EDIRC.
Bibliographic data for series maintained by Klaus Wohlrabe ().