Productivity and Organization in Portuguese Firms
Lorenzo Caliendo,
Esteban Rossi-Hansberg,
Giordano Mion and
Luca David Opromolla
No 1574, 2019 Meeting Papers from Society for Economic Dynamics
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 Örm production quantity and input data for Portuguese Örms, 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, quantitybased 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.
Date: 2019
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Related works:
Journal Article: Productivity and Organization in Portuguese Firms (2020) 
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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Persistent link: https://EconPapers.repec.org/RePEc:red:sed019:1574
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