Working Paper: NBER ID: w15712
Authors: Chad Syverson
Abstract: Economists have shown that large and persistent differences in productivity levels across businesses are ubiquitous. This finding has shaped research agendas in a number of fields, including (but not limited to) macroeconomics, industrial organization, labor, and trade. This paper surveys and evaluates recent empirical work addressing the question of why businesses differ in their measured productivity levels. The causes are manifold, and differ depending on the particular setting. They include elements sourced in production practices--and therefore over which producers have some direct control, at least in theory--as well as from producers' external operating environments. After evaluating the current state of knowledge, I lay out what I see are the major questions that research in the area should address going forward.
Keywords: productivity; management practices; competition; firm performance
JEL Codes: D24; E23; F1; L1; L2; L23
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Better management practices (M54) | Higher productivity (O49) |
| Competition in the market (L13) | Better management practices (M54) |
| Better management practices (M54) | Enhanced productivity (O49) |
| Management practices (M54) | Productivity (O49) |
| Productivity differences (O49) | Market dynamics (D49) |
| Higher management quality (L15) | Increased productivity (O49) |