Productivity and organization in Portuguese firms

Caliendo, Lorenzo, Mion, Giordano, Opromolla, Luca David and Rossi-Hansberg, Esteban (2020) Productivity and organization in Portuguese firms. Journal of Political Economy, 128 (11). pp. 4211-4257. ISSN 0022-3808

[img] PDF - Accepted Version
Download (720kB)


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.

Item Type: Article
Schools and Departments: University of Sussex Business School > Economics
Depositing User: Joy Blake
Date Deposited: 03 Mar 2020 11:40
Last Modified: 26 Jun 2021 01:00

View download statistics for this item

📧 Request an update