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The Middle Productivity Trap: Dynamics of Productivity Dispersion

 
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ProductivityGaps_cidrfwp87.pdf (647.6Kb)
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Bahar, DanyHARVARD
Published Version
https://doi.org/10.2139/ssrn.3043508
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Citation
Bahar, Dany. “The Middle Productivity Trap: Dynamics of Productivity Dispersion.” CID Research Fellow and Graduate Student Working Paper Series 2017.87, Harvard University, Cambridge, MA, September 2017.
Abstract
Using a worldwide firm-level panel dataset I document a "U-shaped" relationship between productivity growth and baseline levels within each country and industry. That is, fast productivity growth is concentrated at both ends of the productivity distribution. This result serves as a potential explanation to two stylized facts documented in the economic literature: the rising productivity dispersion within narrowly defined sectors, and the increasing market share of few yet highly productive firms.
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This article is made available under the terms and conditions applicable to Other Posted Material, as set forth at http://nrs.harvard.edu/urn-3:HUL.InstRepos:dash.current.terms-of-use#LAA
Citable link to this page
https://nrs.harvard.edu/URN-3:HUL.INSTREPOS:37366608

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