Distortions and the size distribution of plants: evidence from cross-country data

García-Santana, Manuel; Ramos, Roberto

doi:10.1007/s13209-015-0129-y

Cited by 14 publications

(13 citation statements)

References 59 publications

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“…The new theories of international trade emphasize this firm heterogeneity to explain export status (Melitz, 2003 andGreenaway andKneller, 2007). Firm size is a crucial variable for explaining firm productivity (García-Santana and Ramos, 2013), and both variables are determinants of whether firms choose to export. Several reports indicate that the small average size of Spanish firms is the main impediment to their international competitiveness.…”

Section: Introductionmentioning

confidence: 99%

Reassessing the link between firm size and exports

Hernández

2019

Eurasian Bus Rev

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Section: Introductionmentioning

confidence: 99%

Reassessing the link between firm size and exports

Hernández

2019

Eurasian Bus Rev

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“…Work attempting to expand on this has been hobbled by limited comparability of data across countries. For example, the World Bank Enterprise Surveys used by García-Santana and Ramos (2015) do not cover the informal sector, which is large in poor countries, while the Dun & Bradstreet (D&B) data used by Alfaro, Charlton, and Kanczuk (2009) tend to oversample large firms, in particular in poorer countries, where D&B's coverage is thinner. A similar issue affects the United Nations Industrial Development Organization's (UNIDO) Industrial Statistics Database used by Bollard, Klenow, and Li (2016).…”

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confidence: 99%

The Firm Size Distribution across Countries and Skill-Biased Change in Entrepreneurial Technology

Poschke

2018

American Economic Journal: Macroeconomics

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Development is associated with systematic changes in the firm size distribution. I document that the mean and dispersion of firm size are larger in rich countries, and increased over time for US firms. To analyze the firm size-development link, I construct a frictionless general equilibrium model of occupational choice with skill-biased change in entrepreneurial technology (i.e., technical progress favors better entrepreneurs). The model accounts for key aspects of the US experience with only changes in aggregate technology. It attributes half the variation in mean and dispersion of firm size across countries to technical change. Distortions also affect the size distribution. (JEL J24, L11, L25, L26, O33)

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“…In these studies, the extent of misallocation is easily understood in terms of deviation from the efficiency condition (i.e., in efficient markets, the MRP of an input equals its price). The general conclusion reached by these studies is that the aggregate productivity losses associated with misallocation are substantial and, as a consequence, eliminating or reducing the within-industry distortions is key to improving aggregate productivity and, definitively, the aggregate income of countries Garcia-Santana et al, 2015;Gopinath et al, 2017;Dias et al, 2014;Bellone and Mallen-Pisano, 2013).…”

Section: Related Literaturementioning

confidence: 99%

Skill Biased Technical Change and Misallocation: A Unified Framework

2019

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Due to strict reliance on competitive labor markets, standard approaches which measure skill biased technical change (SBTC) conflate labor market distortions which prevent firms from choosing the efficient ratio between skilled and unskilled labor and 'true' SBTC. This contrasts with recent evidence on decoupling between wages and productivity. To overcome this limitation, we present a unified framework to estimate SBTC which accounts for factor accumulation (FA) effects, and quantifies the discrepancy (i.e., relative misallocation) between the wage ratio (skilled to unskilled) and the marginal rate of technical substitution (MRTS). The suggested methodology takes advantage of recent developments in nonparametric estimation methods (i.e., discrete smoothing) that allow us to estimate the marginal productivity of inputs at the country-sector level directly from data. Over the 1995-2005 period, we find a 3% yearly growth rate for the MRTS between skilled and unskilled labor and show such change to be almost entirely driven by SBTC, rather than FA, on average. In most cases, SBTC and MRTS growth do not come with increasing skill premia; this fosters the decoupling and results in relative misallocation patterns (across countries and sectors) which are quite heterogeneous, for which we report a 6% overall increase. Finally, we show evidence that relative misallocation increased less in country-sectors in which it was larger at the beginning of the period and grew more in country-sectors characterized by: (a) higher skill-intensity; (b) lower bargaining power of skilled over unskilled workers; and (c) lower FA effects.

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Distortions and the size distribution of plants: evidence from cross-country data

Cited by 14 publications

References 59 publications

Reassessing the link between firm size and exports

Reassessing the link between firm size and exports

The Firm Size Distribution across Countries and Skill-Biased Change in Entrepreneurial Technology

Skill Biased Technical Change and Misallocation: A Unified Framework

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