Decomposing Differences In Total Factor Productivity Across Firm Size

Topics:
Organization
Tags:
Barcelona,
Difference,
Endowment,
Total Factor Productivity
Source:
Universitat de Barcelona

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Overview: 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. Particular emphasis was placed 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.

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Format: PDF | Size: 214KB | Date: Mar 2007 | Pages: 25

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