Input Allocations and Productivity

Organization and productivity differences between firms have been recently documented to be large and to play an important role in understanding the effects of major social phenomena such as trade openness, financial development or technological change etc. The existing literature dealing with firm level productivity differences focuses mostly on the allocation of capital and labor across businesses. In this project we intend to generalize the analysis in two respects: 1) analyze the structure of firm level employment by function, contract type and education level and its interactions with the other inputs. 2) connect firm level characteristics to aggregate productivity at industry, regional and national level. Our analysis will help understand better the evolution of firm level activities during the business cycle and provide valuable guidance in assessing labor and product market policies.

Organization and productivity differences between firms have been recently documented to be large and to play an important role in understanding the effects of major social phenomena such as trade openness, financial development or technological change etc. The existing literature dealing with firm level productivity differences focuses mostly on the allocation of capital and labor across businesses. In this project we intend to generalize the analysis in two respects: 1) analyze the structure of firm level employment by function, contract type and education level and its interactions with the other inputs. 2) connect firm level characteristics to aggregate productivity at industry, regional and national level. Our analysis will help understand better the evolution of firm level activities during the business cycle and provide valuable guidance in assessing labor and product market policies.