Les institutions de promotion des politiques de productivité : Logique et enseignements
Dans l’optique d’une meilleure productivité et par conséquent, d’une hausse des niveaux de vie sur le long terme, les politiques publiques doivent porter prioritairement sur l’amélioration des mesures incitatives, des capacités et des marges de manoeuvre dans l’économie. Les pouvoirs publics peuvent trouver difficile de concevoir de telles politiques et encore plus difficile de les mettre en oeuvre, vu la politique des groupes de pression et la fragmentation des structures administratives. La mise en place d’institutions publiques qui aident les pouvoirs publics non seulement à identifier les bonnes stratégies, mais également à lutter contre les pressions exercées à l’encontre des réformes, et qui expliquent les enjeux à la collectivité, se justifie tout à fait. Ces institutions doivent présenter un certain nombre de caractéristiques : indépendance de leurs structures de gouvernance, transparence des procédures, des capacités de recherche solides, un cadre de référence macroéconomique et une imbrication dans les mécanismes décisionnels du gouvernement. Le présent document propose une classification des structures institutionnelles concernées, évaluées à l’aune de ces différents critères. Si le concours de la plupart de ces structures aux politiques de productivité est accessoire par rapport à leur fonction première, certaines ont été conçues expressément à cette fin. L’étendue de leur contribution concrète dépend des modalités de leur gouvernance et de leur fonctionnement, des missions qui leurs sont confiées et du traitement que les pouvoirs publics réservent à leurs rapports. S’il n’existe pas de « solution passe-partout », il y a amplement matière à renforcer la capacité institutionnelle de la plupart des gouvernements dans ce domaine. Ces derniers ont également la possibilité d’apprendre les uns des autres les mérites respectifs de chaque logique, cependant que les institutions existantes ont la possibilité de renforcer leurs capacités en s’appuyant sur l’expérience de leurs homologues.
Classification-JEL: H1; K2; L5; O4; P5
Keywords: institutional design
Creation-Date: 2015-11-19
Number: 1
Handle: RePEc:oec:ecoaac:1-EN
Template-type: ReDIF-Paper 1.0
Author-Name: Dan Andrews
Author-Workplace-Name: OECD
Author-Name: Chiara Criscuolo
Author-Name: Peter N. Gal
Author-Workplace-Name: OECD
Title: Frontier Firms, Technology Diffusion and Public Policy: Micro Evidence from OECD Countries
Abstract: This paper analyses the characteristics of firms that operate at the global productivity frontier and their relationship with other firms in the economy, focusing on the diffusion of global productivity gains and the policies that faciliate it. Firms at the global productivity frontier – defined as the most productive firms in each two-digit industry across 23 countries – are typically larger, more profitable, younger and more likely to patent and be part of a multinational group than other firms. Despite the slowdown in aggregate productivity, productivity growth at the global frontier remained robust over the 2000s. At the same time, the rising productivity gap between the global frontier and other firms raises key questions about why seemingly non-rival technologies do not diffuse to all firms. The analysis reveals a highly uneven process of technological diffusion, which is consistent with a model whereby global frontier technologies only diffuse to laggards once they are adapted to country-specific circumstances by the most productive firms within each country (i.e. national frontier firms). This motivates an analysis of the sources of differences in the productivity and size of national frontier firms vis-à-vis the global frontier and the catch-up of laggard firms to the national productivity frontier. Econometric analysis suggests that well-designed framework policies can aid productivity diffusion by sharpening firms’ incentives for technological adoption and by promoting a market environment that reallocates resources to the most productive firms. There is also a role for R&D tax incentives, business-university R&D collaboration and patent protection but trade-offs emerge which can inform the design of innovation-specific policies.
Entreprises en pointe, diffusion des technologies et politiques publiques : Microdonnées des pays de l'OCDE
Ce document analyse les caractéristiques des entreprises qui se situent à la frontière mondiale en matière de productivité et leurs relations avec les autres entreprises de l’économie. Les entreprises à la frontière de la productivité mondiale – que l’on définit comme étant les entreprises les plus productives dans chaque industrie correspondant à un code à deux chiffres de la classification des activités économiques, dans 23 pays – sont en général de plus grande taille, plus rentables, plus jeunes, présentent une plus grande propension à breveter et font plus souvent partie d’un grand groupe multinational que les autres entreprises. Malgré le ralentissement de la croissance de la productivité globale, la croissance à la frontière mondiale est demeurée robuste pendant les années 2000, tandis que le creusement de l’écart de productivité entre les entreprises à la frontière et les autres soulève d’importantes questions quant aux raisons faisant que des technologies non rivales n’atteignent pas toutes les entreprises. À cet égard, l’analyse concorde avec un modèle selon lequel les technologies à la frontière mondiale ne rejoignent les entreprises retardataires que lorsqu’elles sont adaptées aux exigences propres à chaque pays des entreprises qui se situent à la frontière nationale. Ce processus très inégal de diffusion des technologies justifie une analyse des différences internationales en ce qui concerne les écarts de performances entre les entreprises à la frontière mondiale et celles qui se situent à la frontière nationale, et le rattrapage des entreprises retardataires par rapport à la frontière de productivité nationale. L’analyse économétrique donne à penser que des politiques-cadres judicieuses peuvent favoriser la diffusion de la productivité en affinant les motivations des entreprises à adopter des technologies nouvelles et en promouvant un environnement de marché qui réaffecte les ressources aux entreprises les plus productives. Les incitations fiscales à la R-D, la collaboration entreprises-universités en R-D et la protection par brevet ont un rôle à jouer, mais des arbitrages nouveaux peuvent inspirer des politiques spécifiques en faveur de l’innovation.
Classification-JEL: M13; O30; O40; O43; O57
Keywords: firm dynamics, productivity, productivité, reallocation, réaffectation
Creation-Date: 2015-11-12
Number: 2
Handle: RePEc:oec:ecoaac:2-EN
Template-type: ReDIF-Paper 1.0
Author-Name: Chang-Tai Hsieh
Author-Workplace-Name: Organization of American States
Title: Policies for Productivity Growth
Abstract: Growth, investment and trade are the outcomes of the processes by which people with ideas start firms. But where does the productive capacity of firms come from? What are the barriers that prevent resources to flow to the firms with the greatest potential? Why is it that not all people that possess entrepreneurial talent choose to start firms? This paper reviews the micro forces that matter for aggregate productivity growth focusing on six issues: costs to reallocating labour and capital, the influence of firm ownership and political connections, informality, the allocation of talent across the economy, barriers to internal trade and the working of housing markets. It concludes that the forces are complex but matter tremendously for macro productivity and addressing them requires a wide combination of policies.
Le rôle des politiques publiques pour la croissance de la productivité
La croissance, l’investissement et le commerce découlent de processus par lesquels les personnes qui ont des idées créent des entreprises. Mais d’où vient la capacité productive des entreprises? Quels sont les obstacles qui empêchent la circulation des ressources vers les entreprises ayant le plus grand potentiel? Comment se fait-il que toutes les personnes qui ont un talent d’entrepreneur ne choisissent pas de créer des entreprises? Ce document examine les facteurs microéconomiques qui influencent la croissance de la productivité agrégée en se concentrant principalement sur six d’entre eux : les coûts de la réaffectation du travail et du capital, l’influence de la propriété de l’entreprise et des relations politiques, l’informalité, la répartition des talents à travers l’économie, les obstacles au commerce intérieur et le fonctionnement des marchés du logement. La conclusion est que ces facteurs sont complexes mais ont un effet considérable sur la productivité au niveau macroéconomique et leur traitement exige l’application d’un large éventail de politiques publiques.
Classification-JEL: O4; O43; O47
Keywords: croissance, growth, institutions, institutions, productivity, productivité
Creation-Date: 2015-12-14
Number: 3
Handle: RePEc:oec:ecoaac:3-EN
Template-type: ReDIF-Paper 1.0
Author-Name: Sean Dougherty
Author-Workplace-Name: OECD
Author-Name: Octavio Escobar
Author-Workplace-Name: ESG Management School of Paris
Title: Could Mexico become the new ‘China'?: Policy drivers of competitiveness and productivity
Abstract: Over the last decade, Mexico’s unit labour costs decreased relative to other emerging markets’, especially compared to China’s. This decrease boosted Mexico’s trade competitiveness, particularly in the manufacturing sector. However, Mexico’s increasing competitiveness masks one of the country’s fundamental concerns, which is the absence of productivity improvements. The aim of this paper is two-fold: first, we examine the evolution of total factor productivity in Mexico’s manufacturing sector, as compared to China’s. Firm-level data is employed to analyse the distribution and characteristics of productivity across Mexico’s regions. Second, using regional data for the period 2005–2012, we study the policy impediments behind sluggish productivity improvements, particularly to determine how labour informality may have contributed. The study takes advantage of Mexico’s heterogeneity across regions in terms of productivity, market regulation, financial constraints and firm size to identify economic policies that can help to boost productivity in the future.
Le Mexique en phase de devenir la nouvelle Chine ? : Déterminants institutionnels de la compétitivité et de la productivité
Au cours de la dernière décennie, les coûts unitaires du travail du Mexique ont diminué par rapport aux autres économies émergentes, en particulier par rapport à la Chine. Cette baisse a stimulé la compétitivité commerciale du Mexique, essentiellement dans le secteur manufacturier. Cependant, l’amélioration de la compétitivité semble masquer le principal problème mexicain, à savoir que cette dernière n’est pas accompagnée d’augmentation de la productivité. L’objectif de cet article est double: d'abord, nous examinons l'évolution de la productivité totale des facteurs dans le secteur manufacturier du Mexique, en comparaison avec la Chine. Les données utilisées sont recueillies au niveau des firmes, afin de pouvoir analyser la répartition et les caractéristiques de la productivité à travers les régions mexicaines. Deuxièmement, en utilisant les données régionales pour la période 2005–2012, nous étudions les obstacles politiques qui ont conduit à une stagnation de la productivité, en particulier pour déterminer dans quelle mesure l'informalité du travail pourrait y avoir contribué. Afin d’identifier les politiques économiques susceptibles de stimuler la productivité dans l'avenir, l'étude tire parti de l'hétérogénéité régionale en termes de productivité, du cadre réglementaire, des contraintes financières et de la taille des entreprises.
Classification-JEL: E26; L25; O17; O43; O54
Keywords: allocative efficiency, informality, informalité, micro data, micro-données, productivity, productivité, sub-national policy analysis
Creation-Date: 2016-07-07
Number: 4
Handle: RePEc:oec:ecoaac:4-EN
Template-type: ReDIF-Paper 1.0
Author-Name: Dan Andrews
Author-Name: Chiara Criscuolo
Author-Name: Peter N. Gal
Title: The Best versus the Rest: The Global Productivity Slowdown, Divergence across Firms and the Role of Public Policy
Abstract: In this paper, we aim to bring the debate on the global productivity slowdown – which has largely been conducted from a macroeconomic perspective – to a more micro-level. We show that a particularly striking feature of the productivity slowdown is not so much a lower productivity growth at the global frontier, but rather rising labour productivity at the global frontier coupled with an increasing labour productivity divergence between the global frontier and laggard (non-frontier) firms. This productivity divergence remains after controlling for differences in capital deepening and mark-up behaviour, suggesting that divergence in measured multi-factor productivity (MFP) may in fact reflect technological divergence in a broad sense. This divergence could plausibly reflect the potential for structural changes in the global economy – namely digitalisation, globalisation and the rising importance of tacit knowledge – to fuel rapid productivity gains at the global frontier. Yet, aggregate MFP performance was significantly weaker in industries where MFP divergence was more pronounced, suggesting that the divergence observed is not solely driven by frontier firms pushing the boundary outward. We contend that increasing MFP divergence – and the global productivity slowdown more generally – could reflect a slowdown in the diffusion process. This could be a reflection of increasing costs for laggard firms of moving from an economy based on production to one based on ideas. But it could also be symptomatic of rising entry barriers and a decline in the contestability of markets. We find the rise in MFP divergence to be much more extreme in sectors where pro-competitive product market reforms were least extensive, suggesting that policy weaknesses may be stifling diffusion in OECD economies.
Classification-JEL: O43; O57; O30; O40; M13
Keywords: firm dynamics, knowledge diffusion, productivity, regulation, technological change
Creation-Date: 2016-12-02
Number: 5
Handle: RePEc:oec:ecoaac:5-EN
Template-type: ReDIF-Paper 1.0
Author-Name: Rudiger Ahrend
Author-Name: Emily Farchy
Author-Name: Ioannis Kaplanis
Author-Name: Alexander C. Lembcke
Title: What Makes Cities More Productive?: Agglomeration economies and the role of urban governance: Evidence from 5 OECD Countries
Abstract: This paper estimates agglomeration benefits across five OECD countries, and represents the first empirical analysis that combines evidence on agglomeration benefits and the productivity impact of metropolitan governance structures, while taking into account the potential sorting of individuals across cities. The comparability of results in a multi-country setting is supported through the use of a new internationally-harmonised definition of cities based on economic linkages rather than administrative boundaries. In line with the literature, the analysis confirms that city productivity increases with city size but finds that cities with fragmented governance structures tend to have lower levels of productivity. This effect is mitigated by the existence of a metropolitan governance body.
Comment rendre les villes plus productives? : Economies d’agglomération et rôle de la gouvernance urbaine: une étude sur 5 pays de l’OCDE
Cet article teste l’existence d’économies d'agglomération dans cinq pays de l’OCDE. Ce papier est la première analyse empirique prouvant l’existence d’économies d’agglomération et l’impact des différentes structures de gouvernance sur la productivité, tout en neutralisant l’effet d’appariement sélectif des individus entre les différentes villes (différentes villes attirent des individus au profil différent). L’utilisation d’une nouvelle définition harmonisée des aires urbaines fondée sur les liens économiques plutôt que sur les frontières administratives garantit la comparabilité des résultats entre les pays. A l’instar de la littérature sur le sujet, cette analyse confirme que la productivité dans les agglomérations urbaines augmente avec la population (taille de l’agglomération), mais conclut que la « fragmentation » de leur gouvernance induit des niveaux de productivité plus faibles. Cet effet négatif d’une gouvernance fragmentée semble atténué par l’existence d’une entité de coopération métropolitaine (par exemple, une communauté d’agglomération).
Classification-JEL: H73; R12; R23; R50
Keywords: agglomeration economics, cities, governance, productivity
Creation-Date: 2017-02-08
Number: 6
Handle: RePEc:oec:ecoaac:6-EN
Template-type: ReDIF-Paper 1.0
Author-Name: Andrea Renda
Author-Name: Sean Dougherty
Title: Pro-Productivity Institutions: Learning from National Experience
Abstract: This paper analyses and compares ten institutions that have a mandate to promote productivity-enhancing reforms. The selected bodies include government advisory councils, standing inquiry bodies, and ad hoc, temporary task forces. We find that well-designed pro-productivity institutions can generally improve the quality of the policy process and political debate, and can make a significant contribution to evidence-based policymaking. Our findings also support the view that concentrating knowledge and research on productivity in one independent, highly skilled and reputed body can help create the momentum and the knowledge that are required to embrace the challenging task of promoting long-term productivity growth. We also find evidence that while institutions located outside government have more leeway in promoting reforms that challenge vested interests and produce results over a time span that goes beyond the electoral cycle, the existence of smart government bodies can allow experimental policymaking and a more adaptive, evidence-based policy process. We also find that it is of utmost importance to provide these bodies with sufficient resources, skills, transparency and procedural accountability to fulfil their tasks; a sufficiently broad mission, oriented towards long-term well-being and at both supply-side and demand-side considerations; policy evaluation functions; and the ability to reach out to the general public in a variety of ways, from consultation to advocacy, use of social media, and other forms of communication.
Classification-JEL: D7; H1; L1; O4
Keywords: government bodies, independence, political economy of reform, public sector productivity
Creation-Date: 2017-04-12
Number: 7
Handle: RePEc:oec:ecoaac:7-EN
Template-type: ReDIF-Paper 1.0
Author-Name: Ana Fontoura Gouveia
Author-Workplace-Name: Ministry of Finance, Portugal
Author-Name: Sílvia Santos
Author-Workplace-Name: Banco de Portugal
Author-Name: Inês Gonçalves
Author-Workplace-Name: Instituto Nacional de Estatística
Title: The impact of structural reforms on productivity: The role of the distance to the technological frontier
Abstract: In recent years, literature has linked structural reforms with productivity growth. Considering Portugal’s recent comprehensive reform agenda, this topic acquires particular relevance. Using data for Portuguese firms for the period 2006-2014, this paper assesses the impact of structural reforms on firms’ productivity. In line with existing literature, the analysis shows that most reforms entail long-term gains, despite, in some reform areas, the existence of short-term costs. In general, there are important differences across reform areas and across firms, namely when comparing firms with different productivity levels. The firms’ distance to the technological frontier mediates the impact of reforms, either by potentiating its effects or by curbing them, depending on the reform area.
Classification-JEL: D04; D22; D24; O33
Keywords: Distance to frontier, Growth, Structural reforms, Total Factor Productivity
Creation-Date: 2017-05-09
Number: 8
Handle: RePEc:oec:ecoaac:8-EN
Template-type: ReDIF-Paper 1.0
Author-Name: Gustavo Monteiro
Author-Name: Ana Fontoura Gouveia
Author-Name: Sílvia Santos
Title: Product markets’ deregulation: a more productive, more efficient and more resilient economy?
Abstract: This paper assesses the impact of product market deregulation in upstream sectors on the productivity growth of firms in downstream sectors (i.e. those firms using the output of the reformed sectors as inputs in their production process). Relying on a firm level database for the period 2004-2014 covering all Portuguese firms, we show that reforms bring productivity gains already in the short-run and that are sustained in the long-run. The effects are more positive for those further away from the technological frontier and are also heterogeneous across sectors. In addition, reforms potentiate the exit of the least productive firms, improving the resource allocation in the economy by a process of selection – for the least productive, only those that have scope to catch-up with the frontier are able to remain. Finally, we show that the adoption of product market reforms in upstream sectors leads to a more resilient economy, better equipped to face adverse shocks.
Classification-JEL: D04; D22; L43; L51
Keywords: Exit Rates, Growth, Product Markets, Resilience, Resource Allocation, Structural Reforms, Total Factor Productivity
Creation-Date: 2017-09-04
Number: 9
Handle: RePEc:oec:ecoaac:9-EN
Template-type: ReDIF-Paper 1.0
Author-Name: Paul Conway
Author-Workplace-Name: New Zealand Productivity Commission
Title: Achieving New Zealand’s productivity potential
Abstract: Productivity growth has slowed across most OECD economies since the mid-2000s. While important aspects of New Zealand’s economic performance have improved over this period, productivity growth is still comparatively low. This continues a long-run trend of poor productivity in New Zealand, which is the key reason why average incomes are still below the OECD average notwithstanding recent strong growth. Given that framework policy settings are often regarded as fit for purpose, this long-run track record has puzzled international and domestic economists for decades. The apparent disconnect between policy and performance naturally raises questions about the broad policy directions and institutions necessary to close New Zealand’s still-substantial productivity and income gaps relative to leading OECD economies. In an effort to provide some answers, this paper outlines the extent and nature of New Zealand’s long-run productivity underperformance and the broad economic reasons why lifting productivity has proven to be so difficult. On the basis of this diagnosis, the paper sketches out broad areas of policy reform that would help improve long-run growth in productivity and incomes. In some respects, this represents a new reform challenge with a focus on investing in the assets necessary to fully benefit from the important changes taking place in the global economy.
Classification-JEL: O12; O2; O3; O43
Keywords: innovation, New Zealand, resource allocation, technology diffusion
Creation-Date: 2017-10-16
Number: 10
Handle: RePEc:oec:ecoaac:10-EN
Template-type: ReDIF-Paper 1.0
Author-Name: OECD
Author-Name: Tatiana Slobodnitsky
Author-Name: Lev Drucker
Author-Name: Assaf Geva
Title: The Contribution of Multinational Enterprises to Labor Productivity: The Case of Israel
Abstract: We examine the impact of multinational enterprises (MNEs) on labor productivity in two ways: 1) creating high-paying jobs; and 2) improving employees’ human capital. Our analysis is based on a unique database that matches workers to companies, for the 450 largest companies in Israel, during the years 2005-2010. The main challenge in dentifying the impact of MNEs on labor productivity stems from their tendency to cherry-pick workers. This study offers an innovative solution to this selection bias by constructing a sample of employees who have all worked at MNEs at some point. We find that, on average, current employment at a MNE is associated with a wage premium of 8.3%. Moreover, past work experience at a MNE has a positive 1.6% impact on wages. Although economically significant, the results are relatively modest compared to those reported in the literature. In addition, we differentiate MNEs according to size and brand recognition, and find that the impact on wages is larger for leading MNEs. These results were found to be stable with respect to changes in the sample and in specifications.
Classification-JEL: F23; J24
Keywords: human capital, labor productivity, Multinational enterprises
Creation-Date: 2018-02-16
Number: 11
Handle: RePEc:oec:ecoaac:11-EN
Template-type: ReDIF-Paper 1.0
Author-Name: Chiara Criscuolo
Author-Name: Jonathan Timmis
Title: GVCS and centrality: Mapping key hubs, spokes and the periphery
Abstract: This paper uses “centrality” metrics to reflect position with Global Value Chains (GVCs). Central sectors reflect those that are highly connected (both directly and indirectly) and influential within globalproduction networks, whereas peripheral sectors exhibit weak linkages and are less influential. Applying these metrics to OECD ICIO data, reveals there have been profound changes in the structure of GVCs over the period 1995-2011. Whilst some activities remain clustered around the same key hubs as was the case at the start of the period (e.g. motor vehicles), for others there have been dramatic changes in the geography of economic activity (e.g. IT manufacturing), whereas other activities have become more influential for value chains almost universally (e.g. IT services). Several emerging economies and their industries have become more central to global production networks. We find this is particularly true of most peripheral industries of Eastern European countries, with their growing importance coinciding with the timing of their EU accession. Asian value chains have also undergone substantial reorganisation. In particular, the centrality of Japanese industries has fallen from an initial position of being the key hub within Asian value chains and the bulk of this fall does not appear to be due to the decline in size of the Japanese economy over this period. This is in contrast with trends in foreign value added content of exports of these Japanese industries, which increased over the same time period, illustrating that the centrality measure does not seem to simply reflect features captured by existing GVC metrics.
Classification-JEL: C67; F12; F14; O57
Keywords: centrality, global value chains, input-output tables, international trade, network analysis
Creation-Date: 2018-02-23
Number: 12
Handle: RePEc:oec:ecoaac:12-EN
Template-type: ReDIF-Paper 1.0
Author-Name: Ana Fontoura Gouveia
Author-Name: Christian Osterhold
Title: Fear the walking dead: Zombie firms, spillovers and exit barriers
Abstract: Productivity growth is slowing down among OECD countries, coupled with increased misallocation of resources. A recent strand of literature focuses on the role of non-viable firms (“zombie firms”) to explain these developments. Using a rich firm-level dataset for one of the OECD countries with the largest drop in barriers to firm exit and restructure, we assess the role of zombies on firm dynamics, both in the extensive and intensive margins. We confirm the results on the high prevalence of zombie firms, significantly less productive than their healthy counterparts and thus dragging aggregate productivity down. Moreover, while we find evidence of positive selection within zombies, with the most productive restructuring and the least productive exiting, we also show that the zombies' productivity threshold for exit is much lower than that of nonzombies, allowing them to stay in the market, distorting competition and sinking resources. Zombie prevalence curbs the growth of viable firms, in particular the most productive, harming the intra-sectoral resource reallocation. We show that a reduction in exit and restructuring barriers promotes a more effective exit channel and fosters the restructuring of the most productive. These results highlight the role of public policy in addressing zombies' prevalence, fostering a more efficient resource allocation and enabling productivity growth.
Classification-JEL: D24; E22; E24; G33; J24; L25
Keywords: Firm Dynamics, Insolvency Frameworks, Labor Productivity, Resource Allocation, Zombie Firms
Creation-Date: 2018-06-25
Number: 13
Handle: RePEc:oec:ecoaac:13-EN
Template-type: ReDIF-Paper 1.0
Author-Name: Chiara Criscuolo
Author-Name: Jonathan Timmis
Title: GVC centrality and productivity: Are hubs key to firm performance?
Abstract: This paper uses “centrality” metrics to reflect the changing structure of Global Value Chains (GVCs), contrasting central hubs and peripheral countries and sectors, and examine how these changes impact firm productivity. Using cross-country firm-level data from ORBIS, the paper finds that changing position within GVCs can play a role in the catch up of firms, but the results are heterogeneous across firms and countries. Firstly, becoming more central is associated with faster productivity growth of smaller firms, nonfrontier businesses, and of firms in smaller economies and in post-2004 EU member countries. And these correlations weaken with firm size and with proximity to the frontier, such that when one ignores firm heterogeneity and only considers average effects, there is no correlation for the average firms in the data. Secondly, the (centrality weighted) average productivity of buyers matters for the productivity of firms in our data overall, however this is particularly true for firms in large economies, for non-frontier and for smaller firms. The policy environment, such as flexible labour markets, better access to finance, stronger contract enforcement and simplified export procedures, appears to be important in translating the changing structure of GVCs into faster productivity growth of these non-frontier firms.
Classification-JEL: D22; F12; F14; L25
Keywords: centrality, firms, global value chains, network analysis, Productivity
Creation-Date: 2018-06-25
Number: 14
Handle: RePEc:oec:ecoaac:14-EN
Template-type: ReDIF-Paper 1.0
Author-Name: Javier Papa
Author-Name: Luke Rehill
Author-Name: Brendan O’Connor
Title: Patterns of firm level productivity in Ireland
Abstract: Productivity is the ultimate driver of sustainable increases in living standards. While Ireland is a high productivity country, it has not been immune from the global productivity slowdown, with the pace of growth on a downward trend throughout the 2000s. Little research has been carried out as to the determinants behind the productivity slowdown in Ireland, and even less so with microdata. To fill the gap, we use a firm-level panel dataset based on production surveys from Ireland’s national statistics office, together with the OECD MultiProd model, in order to identify productivity patterns and trends distributed by percentile, sector, ownership, as well as measures of the efficiency of resource allocation. Our results show a widening of the productivity gap between the most and least productive firms, with the majority of firms experiencing a decline in productivity since the mid-2000s, and also confirm that aggregate results are driven by the impact of foreign dominated sectors, with foreign firms typically larger and more productive. These results are significant in terms of enterprise policy and featured prominently in the OECD’s 2018 Economic Survey of Ireland.
Classification-JEL: F23; M13; O30; O40; O57
Keywords: Firm level productivity, labour productivity, multifactor productivity, MultiProd, productivity dispersion, productivity distribution, productivity frontier, resource allocation
Creation-Date: 2018-09-24
Number: 15
Handle: RePEc:oec:ecoaac:15-EN
Template-type: ReDIF-Paper 1.0
Author-Name: Mattia Di Ubaldo
Author-Workplace-Name: Economic and Social Research Institute
Author-Name: Martina Lawless
Author-Workplace-Name: Economic and Social Research Institute
Author-Name: Iulia Siedschlag
Author-Workplace-Name: Economic and Social Research Institute
Title: Productivity spillovers from multinational activity to local firms in Ireland
Abstract: As well as their direct effects on output and employment, the attraction of foreign direct investment is sometimes argued to provide further economic benefits through spillover effects that potentially increase the productivity performance of domestic firms. Empirical evidence on these indirect effects has however tended to be mixed. This paper uses Irish firm-level data on both manufacturing and services firms to re-examine and update evidence on intra-industry and intra-region spillovers and then extends the previous research by examining if spillovers are more likely to occur through supply chain linkages. In addition, we consider the heterogeneity of investors and allow the spillover effects to differ for foreign affiliates owned by EU and non-EU based parent companies. Finally, we examine the role of domestic firms’ absorptive capacity in conditioning the effects of spillovers from multinationals on their productivity. Overall, we find limited evidence or a negative link between the presence of foreign-owned firms and the productivity of domestic firms in the same industry or the same region. Examining forward and backward linkages through supply chains indicates that on average, selling to foreign-owned firms had a positive effect while buying from foreign owned firms had a negative effect on the average productivity of domestic firms. Finally, considering the absorptive capacity of domestic firms and allowing the spillover effects to differ depending on the origin of the parent companies, we find that the positive productivity spillovers come from supply chain linkages between domestic firms investing in R&D and foreign affiliates of multinationals with headquarters based outside the EU.
Classification-JEL: D22; F23; O33
Keywords: absorptive capacity, Foreign direct investment, productivity spillovers
Creation-Date: 2018-11-30
Number: 16
Handle: RePEc:oec:ecoaac:16-EN
Template-type: ReDIF-Paper 1.0
Author-Name: Silvia Albrizio
Author-Name: Marina Conesa
Author-Name: Dennis Dlugosch
Author-Name: Christina Timiliotis
Title: Unconventional monetary policy and productivity: Evidence on the risk-seeking channel from US corporate bond markets
Abstract: We examine the relationship between lax monetary policy, access to high-yield bond markets and productivity in the US between 2008 and 2016. Using monetary policy surprises, obtained from changes in interest rates futures in narrow windows around FOMC announcements, we isolate the increased access to high-yield bond markets relative to investment-grade bond markets that is due to unconventional monetary policy (UMP). We find that through the risk-taking channel, UMP has increased investors’ appetite for high-yield US corporate bonds, thereby increasing access to high-yield bond markets for firms with a higher risk profile. Since the relationship between credit ratings and firm-level productivity is U-shaped, the aggregate effect on productivity is a priori unclear. Turning to the real economy, we thus analyse whether this additional access to finance had an effect on aggregate productivity by altering the reallocation of resources across firms. Our results show that unconventional monetary policy induced less investment in tangible capital by high-productive firms. However, before drawing conclusions on the net effects of UMP on aggregate productivity, we discuss a number of issues that this paper could not deal with due to data limitations, including prominently whether this apparent misallocation may have been offset by a shift in the composition of investments towards more intangible investment.
Classification-JEL: F23; D22; O33; D24; E52; G21; G32; G33; J63; O16; O47
Keywords: bond markets, capital reallocation, productivity, Unconventional monetary policy, United States
Creation-Date: 2019-01-14
Number: 17
Handle: RePEc:oec:ecoaac:17-EN
Template-type: ReDIF-Paper 1.0
Author-Name: Matej Bajgar
Author-Name: Giuseppe Berlingieri
Author-Name: Sara Calligaris
Author-Name: Chiara Criscuolo
Author-Name: Jonathan Timmis
Title: Industry Concentration in Europe and North America
Abstract: This report presents new evidence on industry concentration trends in Europe and in North America. It uses two novel data sources: representative firm-level concentration measures from the OECD MultiProd project, and business-group-level concentration measures using matched Orbis-Worldscope-Zephyr data. Based on the MultiProd data, it finds that between 2001 and 2012 the average industry across 10 European economies saw a 2-3-percentage-point increase in the share of the 10% largest companies in industry sales. Using the Orbis-Worldscope-Zephyr data, it documents a clear increase in industry concentration in Europe as well as in North America between 2000 and 2014 of the order of 4-8 percentage points for the average industry. Over the period, about 3 out of 4 (2-digit) industries in each region saw their concentration increase. The increase is observed for both manufacturing and non-financial services and is not driven by digital-intensive sectors.
Classification-JEL: D4; L11; L25
Keywords: business dynamics, Industry concentration, measurement
Creation-Date: 2019-01-21
Number: 18
Handle: RePEc:oec:ecoaac:18-EN
Template-type: ReDIF-Paper 1.0
Author-Name: Peter Gal
Author-Name: William Witheridge
Title: Productivity and innovation at the industry level: What role for integration in global value chains?
Abstract: Productivity growth has declined in most advanced economies in the past two decades and there are signs that the pace of global value chain (GVC) integration has slowed in the post-crisis period. This paper explores the role of GVCs - international trade in intermediate inputs - for multi-factor productivity growth using a range of cross-country industry-level data sources. We find that greater participation in GVCs is associated with faster domestic productivity growth at the industry level. We estimate that if GVCs had continued to grow at their pre-crisis trend, productivity growth would have been around 1 percentage point faster over the subsequent five years in both manufacturing and services. We also find that the productivity-enhancing direction of trade differs between sectors. For manufacturing sectors, greater use of intermediate inputs from foreign sources (backward participation) is linked with faster productivity growth, reflecting the beneficial effects of having access to better quality or cheaper inputs. For services sectors, it is more the sales of intermediates (forward participation) that is associated with productivity gains, in line with the traditional role of services in foreign trade as providing inputs to other activities. Looking by partner country, GVC participation with higher productivity countries is particularly productivity enhancing. We also find that GVC integration spurs greater domestic innovation activity.
Classification-JEL: F14; D24; O30
Keywords: global value chains, innovation, productivity
Creation-Date: 2019-10-04
Number: 19
Handle: RePEc:oec:ecoaac:19-EN
Template-type: ReDIF-Paper 1.0
Author-Name: Dan Andrews
Author-Name: Nathan Deutscher
Author-Name: Jonathan Hambur
Author-Name: David Hansell
Title: The career effects of labour market conditions at entry
Abstract: This paper explores the effects of labour market conditions at graduation on an individual’s work-life over the following decade. Australians graduating into a state and year with a 5 percentage point higher youth unemployment rate can expect to earn roughly 8 per cent less in their first year of work and 3½ per cent less after five years, with the effect gradually fading to around zero ten years on. The magnitude of this effect varies according to the characteristics of the individual and the tertiary institution they attend. We then explore the mechanisms behind this scarring. Scarring partly reflects the subsequent evolution of the unemployment rate — the fact that unemployment shocks tend to persist — highlighting the potential for timely and effective macroeconomic stabilisation policies to ameliorate these scarring effects. More generally, job switching to more productive firms emerges as a key channel through which workers recover from adverse shocks that initially disrupt (worker-firm) match quality. We find some evidence that the speed of recovery has slowed since 2000, which is consistent with the decline in labour market dynamism observed in Australia over that period.
Classification-JEL: E24; J62; J64
Keywords: job mobility, job search, Wages
Creation-Date: 2020-12-03
Number: 20
Handle: RePEc:oec:ecoaac:20-EN
Template-type: ReDIF-Paper 1.0
Author-Name: Santo Milasi
Author-Name: Ignacio González-Vázquez
Author-Name: Enrique Fernández-Macías
Title: Telework before the COVID-19 pandemic: Trends and drivers of differences across the EU
Abstract: This paper provides an overview of the trends and differences in the prevalence of telework across EU countries, sectors and occupations before the outbreak of the COVID-19 pandemic. Descriptive evidence shows that before the outbreak telework was more widespread in ICT- and knowledge-intensive sectors, and generally for high-skilled workers, although with big differences across EU countries. In fact, as shown in this paper, the prevalence of telework varied considerably across countries even within the same sector and occupational group. This suggests that, beyond differences in the industrial and occupational structure of employment, other factors, notably related to differences in organisation and management cultures, contribute to explaining the varying prevalence of telework in the EU. As a result of the outbreak-induced requirements to work from home, differences in telework uptake across countries, sectors and job profiles have likely narrowed in recent months. Yet, if past trends are a guide, the ability to further scale up telework in the future without hampering productivity may remain unevenly distributed in the EU.
Classification-JEL: J01; J20
Keywords: covid-19, remote work, teleworking, work from home
Creation-Date: 2021-01-22
Number: 21
Handle: RePEc:oec:ecoaac:21-EN
Template-type: ReDIF-Paper 1.0
Author-Name: Martina Lawless
Author-Name: Luke Rehill
Title: Productivity dispersion and sectoral labour shares in Europe
Abstract: The stability of the labour share of income is a fundamental feature of macroeconomic models, with broad implications for the shape of the production function, inequality, and macroeconomic dynamics. However, empirically, this share has been slowly declining in many countries for several decades, though its causes are subject of much debate. This paper analyses the drivers of labour share developments in Europe at a sectoral level. We begin with a simple shift-share analysis which demonstrates that the decline across countries has been primarily driven by changes within industries. We then use aggregated microdata from CompNet to analyse drivers of sector-level labour shares and to decompose their effects into shifts in the sector average or reallocation of resources between firms. Our main findings are that the advance of globalisation and the widening productivity gap between “the best and the rest” have negative implications for the labour share. We also find that most of the changes are due to reallocation within sectors providing support for the “superstar firms” hypothesis. The finding that globalisation has had a negative impact on the labour share is of relevance for policy in the context of the current backlash against globalisation and reinforces the need to ensure benefits of globalisation and productivity are passed on to workers.
Classification-JEL: E25; O40; F62
Keywords: globalisation, labour shares, productivity
Creation-Date: 2021-05-26
Number: 22
Handle: RePEc:oec:ecoaac:22-EN
Template-type: ReDIF-Paper 1.0
Author-Name: Pedro S. Martins
Title: Employee training and firm performance: Evidence from ESF grant applications
Abstract: As work changes, firm-provided training may become more relevant. However, there is little causal evidence about the effects of training on firms. This paper studies a large training grants programme in Portugal, supported by the European Social Fund, contrasting firms that received the grants and firms that also applied but were unsuccessful. Combining several rich data sets, we compare many potential outcomes of these firms, while following them over several years both before and after the grant decision. Our difference-in-differences models estimate significant positive effects on take up (training hours and expenditure), with limited deadweight; and that such additional training led to increased sales, value added, employment, productivity, and exports (although not profits). These effects tend to be of at least 5% and, in some cases, 10% or more, and are robust in multiple dimensions.
Classification-JEL: J24; H43; M53
Keywords: productivity, Programme evaluation, Training subsidies
Creation-Date: 2021-07-08
Number: 23
Handle: RePEc:oec:ecoaac:23-EN
Template-type: ReDIF-Paper 1.0
Author-Name: Amandine Brun-Schammé
Author-Name: Martin Rey
Title: A new approach to skills mismatch
Abstract: Skills mismatch - the sub-optimal use of an individual's skills in their occupation - can be a source of dissatisfaction for workers and a brake for productivity growth. In our view, a difference in the level of skills within an occupation is not sufficient to infer that a skills mismatch exists. Since skills-mismatch is the result of a disparity between the supply and demand of labour, the quantifying of skills-mismatch must therefore be based on the mechanisms involved in this disparity. We propose to include in our measurement the level of education and field of study, which are key markers of an individual's skill level in the labour market. This makes it possible to identify, among individuals whose skill level differs from others within an occupation, those whose training profile can (or cannot) explain this situation. Through using the OECD PIAAC 2012 survey, this paper first identifies with data for France, individuals who present an apparent skills mismatch according to the framework proposed. Following an international comparison of “apparent skills mismatch rates”, we conclude this study by observing how the different groups identified differ in terms of how they perceive their employment situation as well as their individual characteristics.
Classification-JEL: O40; I20; J20; J24
Keywords: labour market, level of education, occupation, skills, skills mismatch, training
Creation-Date: 2021-07-08
Number: 24
Handle: RePEc:oec:ecoaac:24-EN
Template-type: ReDIF-Paper 1.0
Author-Name: Camilla Andretta
Author-Name: Irene Brunetti
Author-Name: Anna Rosso
Title: Productivity and human capital: The Italian case
Abstract: This paper investigates whether and how worker composition, ownership and management affect the productivity of firms. To this aim, we use a dataset obtained by integrating the micro-data drawn from Rilevazione su Imprese e Lavoro (RIL), a survey conducted by Inapp in 2010 and 2015 on a representative sample of Italian limited liability and partnership firms, with the AIDA archive containing comprehensive information on the balance sheets of almost all the Italian corporations. We apply different regression models and the findings reveal that a higher share of skilled workers within firms and more experienced managers are associated with higher productivity levels. In addition, firms run by managers with higher education are more likely to introduce innovation. Finally, family ownership and the coincidence of management with ownership are negatively related with firm productivity.
Classification-JEL: J24; D24
Keywords: firm, Human capital, productivity
Creation-Date: 2021-07-08
Number: 25
Handle: RePEc:oec:ecoaac:25-EN
Template-type: ReDIF-Paper 1.0
Author-Name: Gert Bijnens
Author-Name: Emmanuel Dhyne
Title: The return on human (STEM) capital in Belgium
Abstract: Whilst overall productivity growth is stalling, firms at the frontier are still able to capture the benefits of the newest technologies and business practices. This paper uses linked employer-employee data covering all Belgian firms over a period of almost 20 years and investigates the differences in human capital between highly productive firms and less productive firms. We find a clear positive correlation between the share of high-skilled and STEM workers in a firm's workforce and its productivity. We obtain elasticities of 0.20 to 0.70 for a firm's productivity as a function of the share of high-skilled workers. For STEM (science, technology, engineering, mathematics) workers, of all skill levels, we find elasticities of 0.20 to 0.45. More importantly, the elasticity of STEM workers is increasing over time, whereas the elasticity of high-skilled workers is decreasing. This is possibly linked with the increasing number of tertiary education graduates and at the same time increased difficulties in filling STEM-related vacancies. Specifically, for high-skilled STEM workers in the manufacturing sector, the productivity gain can be as much as 4 times higher than the gain from hiring additional high-skilled non-STEM workers. To ensure that government efforts to increase the adoption of the latest technologies and business practices within firms lead to sustainable productivity gains, such actions should be accompanied by measures to increase the supply and mobility of human (STEM) capital. Without a proper supply of skills, firms will not be able to reap the full benefits of the digital revolution.
Classification-JEL: E24; I26; J24
Keywords: education, human capital, linked employer-employee data, productivity, Skills
Creation-Date: 2021-07-08
Number: 26
Handle: RePEc:oec:ecoaac:26-EN
Template-type: ReDIF-Paper 1.0
Author-Name: Fernando Alexandre
Author-Name: Sara Cruz
Author-Name: Miguel Portela
Title: Financial distress and the role of management in micro and small-sized firms
Abstract: In this paper, we focus on the managerial characteristics of micro and small-sized firms. Using linked employer-employee data on the Portuguese economy for the 2010-2018 period, we estimate the impact of management teams’ human capital on the probability of firms becoming financially distressed and their subsequent recovery. Our estimates show that the relevance of management teams’ formal education on the probability of firms becoming financially distressed depends on firms’ size and the type of education. We show that management teams’ formal education and tenure reduce the probability of micro and small-sized firms becoming financially distressed and increases the probability of their subsequent recovery. The estimates also suggest that those impacts are stronger for micro and small-sized firms. Additionally, our results show that functional experience previously acquired in other firms, namely in foreign-owned and in exporting firms and in the area of finance, may reduce the probability of micro firms becoming financially distressed. On the other hand, previous functional experience in other firms seems to have a strong and highly significant impact on increasing the odds of recovery of financially distressed firms. We conclude that policies that induce an improvement in the managerial human capital of micro and small-sized firms have significant scope to improve their financial condition, enhancing the economy’s resilience against shocks.
Classification-JEL: G32; J24; L25
Keywords: Financial distress, firm performance, human capital
Creation-Date: 2021-07-08
Number: 27
Handle: RePEc:oec:ecoaac:27-EN
Template-type: ReDIF-Paper 1.0
Author-Name: Alexandre Mergulhão
Author-Name: José Azevedo Pereira
Title: Productivity-wage nexus at the firm-level in Portugal: Decoupling and divergences
Abstract: There is a growing international concern about the slowdown in productivity growth, especially as labor productivity enhancements are important drivers of higher generalised living standards. Using administrative data of firms in Portugal between 2010 and 2016, we analyse the relationships between productivity and wages. At odds with neoclassical theory of marginal productivity of labor, we find that two thirds of firms insufficiently raised wages given observed productivity growth. Employing unconditional quantile regressions, we investigate some quantifiable determinants of the productivity-wage gap at different parts of the distributions. Most of the documented dynamics contributed not only to the divergence of productivity and wages but also to the decoupling of productivity and wage growth. We argue that labor market flexibilisation intensified segmentation, providing incentives for non standard contracts. Both dimensions, as well as higher board compensations, international trade and on-the-job training weakened the link between productivity and wages.
Classification-JEL: C3; D2; D31; D33; J31; J38
Keywords: compensation, income distribution, Productivity, public policy, Quantile regressions, wage share
Creation-Date: 2021-10-18
Number: 28
Handle: RePEc:oec:ecoaac:28-EN
Template-type: ReDIF-Paper 1.0
Author-Name: Chiara Criscuolo
Author-Name: Peter Gal
Author-Name: Timo Leidecker
Author-Name: Giuseppe Nicoletti
Title: The human side of productivity: Uncovering the role of skills and diversity for firm productivity
Abstract: Relying on linked employer-employee datasets from 10 countries, this paper documents that the skills and the diversity of the workforce and of managers – the human side of businesses – account on average for about one third of the labour productivity gap between firms at the productivity “frontier” (the top 10% within each detailed industry) and medium performers at the 40-60 percentile of the productivity distribution. The composition of skills, especially the share of high skills, varies the most along the productivity distribution, but low and medium skilled employees make up a substantial share of the workforce even at the frontier.High skills show positive but decreasing productivity returns. Moreover, the skill mix of top firms varies markedly across countries, pointing to the role of different strategies pursued by firms in different policy environments. We also find that managerial skills play a particularly important role, also through complementarities with worker skills. Gender and cultural diversity among managers – and to a lesser extent, among workers – is positively related to firm productivity as well. We discuss public policies that can facilitate the catch-up of firms below the frontier through skills and diversity. These cover a wide range of areas, exerting their influence through three main channels: the supply, upgrading and the matching across firms (the SUM) of skills and other human factors.
Classification-JEL: D24; J24; M14
Keywords: diversity, linked employer-employee data, managers, productivity, skills
Creation-Date: 2021-12-06
Number: 29
Handle: RePEc:oec:ecoaac:29-EN
Template-type: ReDIF-Paper 1.0
Author-Name: Pawel Adrjan
Author-Name: Gabriele Ciminelli
Author-Name: Alexandre Judes
Author-Name: Michael Koelle
Author-Name: Cyrille Schwellnus
Author-Name: Tara Sinclair
Title: Will it stay or will it go? Analysing developments in telework during COVID-19 using online job postings data
Abstract: The COVID-19 crisis has triggered a major shift towards telework and virtual interactions. This paper uses information on job postings from the online job site Indeed to analyse developments in the adoption of telework across 20 countries. It finds, first, that the incidence of advertised telework almost tripled during the pandemic, albeit with large differences both across sectors and across countries. Second, cross-country differences are to a notable extent explained by differences in the extent to which governments restricted mobility during the pandemic. However, while the tightening of restrictions substantially raises advertised telework, their easing only modestly reverses the increase. Third, digital preparedness plays an important role in mediating the response of advertised telework to changes in restrictions. The tightening of restrictions has particularly large effects in sectors that are better prepared to adopt digital business models, while their easing has almost no effect in countries with high-quality digital infrastructure. Overall, these results suggest that telework is here to stay, especially in countries with high levels of digital preparedness. Public policies will need to adapt to reap the potential benefits for productivity and worker well-being.
Classification-JEL: D23; E24; J23; G18; M50
Keywords: digital infrastructure, mobility restrictions, telework
Creation-Date: 2021-12-16
Number: 30
Handle: RePEc:oec:ecoaac:30-EN
Template-type: ReDIF-Paper 1.0
Author-Name: Chiara Criscuolo
Author-Name: Peter Gal
Author-Name: Timo Leidecker
Author-Name: Francesco Losma
Author-Name: Giuseppe Nicoletti
Title: The role of telework for productivity during and post-COVID-19: Results from an OECD survey among managers and workers
Abstract: Motivated by the sudden adoption of telework in the wake of the COVID 19 pandemic, the Global Forum on Productivity (GFP) undertook an online survey among managers and workers in 25 countries about their experience and expectations, with a particular focus on productivity and well-being. This paper presents analysis and results from this endeavour. It finds that managers and workers had an overall positive assessment from teleworking both for firm performance and for individual well-being, and wish to increase substantially the share of regular teleworkers from pre-crisis levels. Respondents, on average, find that the ideal amount of telework is around 2-3 days per week, in line with other recent evidence and with the idea that the benefits (e.g., less commuting, fewer distractions) and costs (e.g., impaired communication and knowledge flows) need to be balanced at an intermediate level of telework intensity. To meet the challenges of this “hybrid” working mode, as the survey finds, further changes from management are needed, such as the co-ordination of schedules to encourage a sufficient degree of in-person interaction, and further investment in ICT tools and skills as well as more soft skills to master online communication.
Classification-JEL: D24; M1; O3
Keywords: productivity, survey, telework, well-being, working from home
Creation-Date: 2021-12-16
Number: 31
Handle: RePEc:oec:ecoaac:31-EN
Template-type: ReDIF-Paper 1.0
Author-Name: Filippo Cavassini
Author-Name: Chiara Criscuolo
Author-Name: Francesca Papa
Author-Name: Fatima Talidi
Title: Pro-Productivity institutions at work: Country practices and new insights on their set-up and functioning
Abstract: In the face of slowing productivity growth, a number of OECD countries have set up pro-productivity institutions to produce objective evidence and data on productivity trends and growth drivers and help inform pro-productivity policies and interventions. The paper presents a new analytical framework to analyse the key characteristics of these pro-productivity institutions. The framework draws on a comprehensive stocktaking of pro-productivity institutions and applied policy advice work aimed at supporting capabilities and mutual learning across these institutions. The paper finds that pro-productivity institutions rely on a variety of set-ups and approaches to contribute to pro-productivity policies. Despite this variety, the paper does point to some lessons that can help pro-productivity institutions to continuously strengthen their capabilities. In particular, the paper highlights the importance of guaranteeing the analytical independence of pro-productivity institutions and access to micro-level data on firms and workers to inform policies and interventions with objective data and evidence. The paper opens a new line of research on the political economy of productivity policies that can support countries ensure the effective implementation of policies aimed at enhancing incomes and living standards.
Classification-JEL: D02; D04; D24; E24; J24; O47
Creation-Date: 2022-08-16
Number: 32
Handle: RePEc:oec:ecoaac:32-EN
Template-type: ReDIF-Paper 1.0
Author-Name: Nathalie Scholl
Author-Name: Sébastien Turban
Author-Name: Peter N. Gal
Title: The green side of productivity: An international classification of green and brown occupations
Abstract: This paper describes the methodology used for crosswalking occupation-based measures of Green (“environmentally friendly”) and Brown (“polluting”) jobs from the Standard Occupational Classification (SOC) system to the International Standard Occupation Classification (ISCO) 08 at the most detailed (4-digit) level. The original, task-based Greenness scores by Vona et al. (2018) are provided at the 8-digit SOC level, and the industry-based Brownness measures are provided in 6-digit SOC. Crosswalking these measures requires several choices in terms of weighting and aggregating, which this paper describes in detail. The robustness of the resulting measures to the different weighting options and underlying assumption is tested using Linked Employer-Employee data from Portugal. An empirical application to the Productivity-Greenness link at the firm level shows the robustness of this link to different weighting choices, and confirms that all of the different measures derived are consistent in measuring the Greenness of jobs.
Classification-JEL: J21; J24; L25
Keywords: Brown occupations, Green occupations, Green skills, Green transition,, Occupation Classification, productivity
Creation-Date: 2023-05-25
Number: 33
Handle: RePEc:oec:ecoaac:33-EN
Template-type: ReDIF-Paper 1.0
Author-Name: Clara Kögel
Author-Workplace-Name: OECD
Author-Name: Chiara Criscuolo
Author-Workplace-Name: OECD
Author-Name: Peter Gal
Author-Workplace-Name: OECD
Author-Name: Cyrille Schwellnus
Author-Workplace-Name: OECD
Title: Gender diversity in senior management and firm productivity: Evidence from nine OECD countries
Abstract: This paper investigates the link between gender diversity in senior management and firm-level productivity. For this purpose, it constructs a novel cross-country dataset with information on firms’ senior management group and other firm characteristics, covering both publicly listed and unlisted firms in manufacturing and non-financial market services across nine OECD countries. The main result from the analysis is that productivity gains from increasing gender diversity in senior management are highest among firms with low initial diversity. Increasing the female share to the sample average of 20% in firms with initially lower shares would increase aggregate productivity by around 0.6%. This suggests that improving women’s access to senior management positions matters not only for equity but could yield significant productivity gains.
Classification-JEL: M14; O47; J16
Keywords: gender diversity, senior management, total factor productivity
Creation-Date: 2023-12-13
Number: 34
Handle: RePEc:oec:ecoaac:34-EN
Template-type: ReDIF-Paper 1.0
Author-Name: Gabriele Ciminelli
Author-Name: Antton Haramboure
Author-Name: Lea Samek
Author-Name: Cyrille Schwellnus
Author-Name: Allison Shrivastava
Author-Name: Tara Sinclair
Title: Occupational reallocation and mismatch in the wake of the Covid-19 pandemic: Cross-country evidence from an online job site
Abstract: Employment has recovered strongly from the COVID-19 pandemic despite large structural changes in labour markets, such as the widespread adoption of digital business models and remote work. We analyse whether the pandemic has been associated with labour reallocation across occupations and triggered mismatches between occupational labour demand and supply using novel data on employers’ job postings and jobseekers’ clicks across 19 countries from the online job site Indeed. Findings indicate that, on average across countries, the pandemic triggered large and persistent reallocation of postings and clicks across occupations. Occupational mismatch initially increased but was back to pre-pandemic levels at the end of 2022 as employers and workers adjusted to structural changes. The adjustment was substantially slower in countries that resorted to short-time work schemes to preserve employment during the pandemic.
Classification-JEL: E24; J23; J24; G18
Keywords: covid-19 pandemic, occupational mismatch, reallocation
Creation-Date: 2024-05-17
Number: 35
Handle: RePEc:oec:ecoaac:35-EN
Template-type: ReDIF-Paper 1.0
Author-Name: Chiara Criscuolo
Author-Name: Peter Gal
Author-Name: Lukas B. Freund
Title: Human capital at work: Five facts about the role of skills for firm productivity, growth, and wage inequality
Abstract: Firms vary in their production processes, leading to different occupational skill requirements, and they employ workers with varying skill levels. The sorting of workers with heterogeneous skills into firms differing in productivity, size and age matters for both economic efficiency and distributional outcomes. This paper applies a unified measurement approach to comprehensive administrative micro data from Portugal to establish five facts about the relationship between workforce skills, firm productivity and dynamics, and wage differentials: 1) firms at the productivity frontier not only rely more on high-skill occupations, they also tend to hire the most skilled workers within each occupation; 2) such differences in workforce composition statistically explain close to a fifth of firm-level productivity dispersion; 3) young firms with a high-quality workforce are more likely to experience rapid employment growth; 4) more than half of the large-firm wage premium can be attributed to large firms employing more skilled workers; 5) working alongside highly skilled colleagues raises wages, and the clustering of talented workers in the same firms contributes about as much to the variance of log wages as worker-firm sorting. Together, these results highlight the significant interaction between human capital factors and firm dynamics.
Classification-JEL: D24; J24; J31; O47
Creation-Date: 2024-12-19
Number: 36
Handle: RePEc:oec:ecoaac:36-EN