Economic Adjustment during the Great Recession: The Role of Managerial Quality
Gilbert Cette (),
Jimmy Lopez (),
Jacques Mairesse () and
Giuseppe Nicoletti ()
Additional contact information
Jimmy Lopez: LEDI, UniversitÃ© de Bourgogne-Franche-ComtÃ© (France) and Banque de France (France)
Jacques Mairesse: CREST ENSAE (France); UNU-MERIT, Maastricht University (Netherlands); EHESS (France); NBER (USA)
Giuseppe Nicoletti: Economics Department, OECD (France)
No 2020-26, Working Papers from Center for Research in Economics and Statistics
This study investigates empirically how managerial practices have affected macroeconomic adjustment during the Great Recession after the 2008 economic crisis. We start by constructing a country*industry balanced panel data over the 2007-2015 period for eighteen industries in ten OECD countries, and complementing it by two indicators: an indicator of management quality at the country level based on the managerial practices categorical scores at firm level from Bloom et al. (2012); and an indicator at the industry level for the shocks stemming from the 2008 economic crisis. We then rely on the local projection method pioneered by JordÃ (2005) to estimate the direct impacts of country management quality indicators and industry economic shocks as well as their joint impacts, on five variables of interest: value-added, employment, labor productivity, wage per employee and labor share during the Great Recession. We find that, in countries where management quality is higher, production and employment are more resilient during the Great Recession, with less production losses and employment damages, no effects on productivity, wage moderation and a slight increase in the labor shares. It appears, moreover, that this resilience is increasing with the size of industry shocks.
Keywords: Economic adjustment; Employment; Wage; Management quality; Great Recession; Local projection cross-country analysis; Dynamic modelling. (search for similar items in EconPapers)
JEL-codes: E24 M11 M54 (search for similar items in EconPapers)
Pages: 30 pages
New Economics Papers: this item is included in nep-lab and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://crest.science/RePEc/wpstorage/2020-26.pdf CREST working paper version (application/pdf)
Working Paper: Economic Adjustment during the Great Recession: The Role of Managerial Quality (2020)
Working Paper: Economic adjustment during the Great Recession: The role of managerial quality (2020)
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:crs:wpaper:2020-26
Access Statistics for this paper
More papers in Working Papers from Center for Research in Economics and Statistics Contact information at EDIRC.
Bibliographic data for series maintained by Secretariat General () and Murielle Jules Maintainer-Email : murielle.jules@ensae.Fr.