Working Paper: NBER ID: w25529
Authors: Germn Gutierrez; Thomas Philippon
Abstract: We study the evolution of super star firms in the U.S. economy over the past 60 years. Contrary to common wisdom, super stars firms have not become larger, have not become more productive, and the contribution of star firms to aggregate U.S. productivity growth has fallen by more than one third since 2000.
Keywords: superstar firms; productivity; US economy; market concentration
JEL Codes: D2; E22; E24; F6; G3; L1; O3; O4
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| superstar firms have not increased in size (L25) | share of civilian employment decreasing (J45) |
| superstar firms have not become more productive (O49) | significant drop in their contribution to aggregate productivity growth (O49) |
| contributions of superstar firms to productivity growth have shifted from within-firm productivity increases (O49) | reallocation-driven growth (O49) |
| notable decline in the Hulten contribution of superstar firms to overall productivity growth (O49) | dropping from approximately 50 basis points per year to zero since 2000 (E43) |