NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

The Anatomy of French Production Hierarchies

Lorenzo Caliendo, Ferdinando Monte, Esteban Rossi-Hansberg

NBER Working Paper No. 18259
Issued in July 2012
NBER Program(s):   EFG   ITI   PR

We use a comprehensive dataset of French manufacturing firms to study their internal organization. We first divide the employees of each firm into `layers' using occupational categories. Layers are hierarchical in that the typical worker in a higher layer earns more, and the typical firm occupies less of them. In addition, the probability of adding (dropping) a layer is very positively (negatively) correlated with value added. We then explore the changes in the wages and number of employees that accompany expansions in layers, output, or markets (by becoming exporters). The empirical results indicate that reorganization, through changes in layers, is key to understand how firms expand and contract. For example, we find that firms that expand substantially add layers and pay lower average wages in all pre-existing layers. In contrast, firms that expand little and do not reorganize pay higher average wages in all pre-existing layers.

You may purchase this paper on-line in .pdf format from SSRN.com ($5) for electronic delivery.

Information about Free Papers

You should expect a free download if you are a subscriber, a corporate associate of the NBER, a journalist, an employee of the U.S. federal government with a ".GOV" domain name, or a resident of nearly any developing country or transition economy.

If you usually get free papers at work/university but do not at home, you can either connect to your work VPN or proxy (if any) or elect to have a link to the paper emailed to your work email address below. The email address must be connected to a subscribing college, university, or other subscribing institution. Gmail and other free email addresses will not have access.

E-mail:

Acknowledgments

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w18259

Users who downloaded this paper also downloaded these:
Feng, Li, and Swenson w18260 The Connection between Imported Intermediate Inputs and Exports: Evidence from Chinese Firms
Caliendo and Rossi-Hansberg w17308 The Impact of Trade on Organization and Productivity
Delgado, Ketels, Porter, and Stern w18249 The Determinants of National Competitiveness
Johnson w18240 Trade in Intermediate Inputs and Business Cycle Comovement
Atkin w18266 Endogenous Skill Acquisition and Export Manufacturing in Mexico
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us