Use this identifier to quote or link this document: http://hdl.handle.net/2072/13038

Decomposing differences in total factor productivity across firm size
Castany, Laia; López Bazo, Enrique; Moreno, Rosina
Xarxa de Referència en Economia Aplicada (XREAP)
This paper investigates the extent to which the gap in total factor productivity between small and large firms is due to differences in the endowment of factors determining productivity and to the returns associated with these factors. We place particular emphasis on the contribution of differences in the propensity to innovate and in the use of skilled labor across firms of different size. Empirical evidence from a representative sample of Spanish manufacturing firms corroborates that both differences in endowments and returns to innovation and skilled labor significantly contribute to the productivity gap between small and large firms. In addition, it is observed that the contribution of innovation to this gap is caused only by differences in quantity, while differences in returns have no effect; in the case of human capital, however, most of the effect can be attributed to increasing differences in returns between small and large firms.
2007
33 - Economia
331 - Treball. Relacions laborals. Ocupació. Organització del treball
332 - Economia regional i territorial. Economia del sòl i de la vivenda
334 - Formes d'organització i cooperació en l'economia
Productivitat
Innovació
Dimensió de les empreses
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29 p.
Working Paper
Xarxa de Referència en Economia Aplicada (XREAP)
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