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on Business Economics |
| By: | Mary Amiti; Cedric Duprez; Jozef Konings; John Van Reenen |
| Abstract: | Using firm-to-firm transactions, we show that starting to supply a 'superstar' firm (large domestic firms, exporters, and multinationals) boosts productivity by 8% in the medium run. Placebos on starting relationships with smaller firms and novel identification strategies support a causal interpretation of "superstar spillovers". Consistent with a model of technology transfer, we find falls in markups and bigger treatment effects from technology intensive superstars. We also show that the increase in new buyers is particularly strong within the superstar firm's network, a "dating agency" effect. This suggests an important role for raising productivity through superstars' supply chains regardless of their multinational status. |
| Keywords: | productivity, FDI, spillovers |
| Date: | 2023–04–27 |
| URL: | http://d.repec.org/n?u=RePEc:cep:poidwp:070_updated&r=bec |
| By: | Virginia Minni |
| Abstract: | Why do managers matter for firm performance? This paper provides evidence of the critical role of managers in matching workers to jobs within the firm using the universe of personnel records from a large multinational firm. The data covers 200, 000 white-collar workers and 30, 000 managers over 10 years in 100 countries. I identify good managers as the top 30% by their speed of promotion and leverage exogenous variation induced by the rotation of managers across teams. I find that good managers cause workers to reallocate within the firm through lateral and vertical transfers. This leads to large and persistent gains in workers' career progression and productivity. Seven years after the manager transition, workers earn 30% more and perform better on objective performance measures. In terms of aggregate firm productivity, doubling the share of good managers would increase output per worker by 61% at the establishment level. My results imply that the visible hands of managers match workers' specific skills to specialized jobs, leading to an improvement in the productivity of existing workers that outlasts the managers' time at the firm. |
| Keywords: | managers, career trajectories, internal labor markets, productivity |
| Date: | 2023–10–09 |
| URL: | http://d.repec.org/n?u=RePEc:cep:poidwp:080&r=bec |
| By: | Nicholas Bloom; Philip Bunn; Paul Mizen; Pawel Smietanka; Gregory Thwaites |
| Abstract: | We analyse the impact of Covid-19 on productivity using data from an innovative monthly firm survey panel that asks for quantitative impacts of Covid on inputs and outputs. We find total factor productivity (TFP) fell by up to 5% during 2020-21. The overall impact combined large reductions in 'within-firm' productivity, with an offsetting positive 'between-firm' effects as less productive sectors, and less productive firms within them, contracted. Despite these large pandemic effects, firms' post-Covid forecasts imply surprisingly little lasting impact on aggregate TFP. We also see significant heterogeneity over firms and sectors, with the greatest impacts in those requiring extensive in-person activity. We also ask about unmeasured inflation in the form of deteriorating product quality, finding an additional 1.4% negative impact on TFP. |
| Keywords: | Covid-19, Productivity |
| Date: | 2023–06–26 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1929&r=bec |
| By: | Groiss, Martin; Sondermann, David |
| Abstract: | Labour shortages have become prevalent across advanced economies. Yet, little is known about which firms are more likely to face them and the impact they have on the labour market. We create a firm-level data set spanning 28 EU countries, 283 regions and 18 sectors, contributing to close this gap. We find that structural factors play the dominant role. Firms in regions with limited labour supply as well as innovative and fast-growing firms are particularly prone to face labour shortages. Moreover, shortages tend to aggravate at business cycle peaks. In a second stage, we empirically determine the impact of labour shortages on wages and hiring. Firms with higher shortages pay a wage growth premium to keep and attract workers, increasingly so if they face excess demand. At the same time, those are the firms that hire less than the average. JEL Classification: C36, E24, J20, J23, J30 |
| Keywords: | labour shortages, matching, shift-share instrument, tightness |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20232863&r=bec |
| By: | Nicholas Bloom; Philip Bunn; Paul Mizen; Pawel Smietanka; Gregory Thwaites |
| Abstract: | We analyse the impact of Covid-19 on productivity using data from an innovative monthly firm survey panel that asks for quantitative impacts of Covid on inputs and outputs. We find total factor productivity (TFP) fell by up to 5% during 2020-21. The overall impact combined large reductions in 'within-firm' productivity, with an offsetting positive 'between-firm' effects as less productive sectors, and less productive firms within them, contracted. Despite these large pandemic effects, firms' post-Covid forecasts imply surprisingly little lasting impact on aggregate TFP. We also see significant heterogeneity over firms and sectors, with the greatest impacts in those requiring extensive in-person activity. We also ask about unmeasured inflation in the form of deteriorating product quality, finding an additional 1.4% negative impact on TFP. |
| Keywords: | impact, Covid-19, productivity, innovation, quantitative, TFP, forecasts, heterogeneity |
| Date: | 2022–12–15 |
| URL: | http://d.repec.org/n?u=RePEc:cep:poidwp:061&r=bec |
| By: | Basile Grassi; Giovanni Morzenti; Maarten de Ridder |
| Abstract: | Is it feasible to estimate firm-level markups with commonly available datasets? Common methods to measure markups hinge on a production function estimation, but most datasets do not contain data on the quantity that firms produce. We use a tractable analytical framework, simulation from a quantitative model, and firm-level administrative production and pricing data to study the biases in markup estimates that may arise as a result. While the level of markup estimates from revenue data is biased, these estimates do correlate highly with true markups. They also display similar correlations with variables such as profitability and market share in our data. Finally, we show that imposing a Cobb-Douglas production function or simplifying the production function estimation may reduce the informativeness of markup estimates. |
| Keywords: | Macroeconomics, Production Functions, Markups, Competition |
| Date: | 2022–12–20 |
| URL: | http://d.repec.org/n?u=RePEc:cep:poidwp:063&r=bec |
| By: | Bakkar, Yassine; Machokoto, Michael |
| Abstract: | Utilizing data from 31, 336 firms across 69 countries over the period 2011-2017, we find evidence suggesting macroprudential policies have a significant negative impact on corporate debt, particularly long-term debt. We further find that macroprudential policies have heterogeneous effects, with a greater impact observed among firms facing binding credit constraints and high market competition, as well as those operating in countries with less developed institutions. These findings underscore the importance of institutional factors in determining the effectiveness of macroprudential policies. |
| Keywords: | Capital structure, debt maturity, macroprudential policies |
| JEL: | G20 G30 G32 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:qmsrps:279524&r=bec |
| By: | Siddig, Khalid; Kirui, Oliver K.; Abushama, Hala; Taffesse, Alemayehu Seyoum |
| Keywords: | REPUBLIC OF THE SUDAN; EAST AFRICA; AFRICA SOUTH OF SAHARA; AFRICA; conflicts; agrifood sector; employment; food processing; livelihoods; food security; beverage industry; infrastructure; inputs; Sudan Armed Forces; Rapid Support Forces |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ssspwp:11a&r=bec |
| By: | Maarten de Ridder |
| Abstract: | This paper offers a unified explanation for the slowdown of productivity growth, the decline in business dynamism and the rise of market power. Using a quantitative framework, I show that the rise of intangible inputs - such as software - can explain these trends. Intangibles reduce marginal costs and raise fixed costs, which gives firms with high-intangible adoption a competitive advantage, in turn deterring other firms from entering. I structurally estimate the model on French and U.S. micro data. After initially boosting productivity, the rise of intangibles causes a decline in productivity growth, consistent with the empirical trends observed since themid-1990s. |
| Keywords: | Productivity, Growth, Business Dynamism, Intangible Inputs, Market Power |
| Date: | 2022–12–20 |
| URL: | http://d.repec.org/n?u=RePEc:cep:poidwp:064&r=bec |