Open AccessPosted Content
Firm Size Distortions and the Productivity Distribution: Evidence from France
Reads0
Chats0
TLDR
In this paper, size-contingent laws are used to identify the equilibrium and welfare effects of labor regulation, and the main losers from the regulation are workers and to a lesser extent large firms.Abstract:
We show how size-contingent laws can be used to identify the equilibrium and welfare effects of labor regulation. Our framework incorporates such regulations into the Lucas (1978) model and applies this to France where many labor laws start to bind on firms with exactly 50 or more employees. Using data on the population of firms between 2002 and 2007 period, we structurally estimate the key parameters of our model to construct counterfactual size, productivity and welfare distributions. With flexible wages, the deadweight loss of the regulation is below 1% of GDP, but when wages are downwardly rigid welfare losses exceed 5%. We also show, regardless of wage flexibility, that the main losers from the regulation are workers (and to a lesser extent large firms) and the main winners are small firms.read more
Citations
More filters
Journal ArticleDOI
The Causes and Costs of Misallocation
Diego Restuccia,Richard Rogerson +1 more
TL;DR: In this paper, the authors provide a perspective on three key questions: how important is misallocation, what are the causes of misallocating, and beyond the direct cost of lower contemporaneous output, are there additional costs associated with misallocations.
Journal ArticleDOI
The Missing “Missing Middle”
TL;DR: In this paper, the authors explore the evidence on distribution of firm sizes in more detail and challenge the presumption that a missing middle occurs at all, and show that there is in fact no evidence of such a phenomenon in detailed and comprehensive data on manufacturing firms in India, Indonesia, or Mexico.
Book ChapterDOI
The Facts of Economic Growth
TL;DR: The authors provide an encyclopedia of the fundamental facts of economic growth upon which our theories are built, gathering them together in one place and updating them with the latest available data, with the purpose of providing an encyclopedia for economic growth.
Journal ArticleDOI
Firms, Informality, and Development: Theory and Evidence from Brazil
TL;DR: The authors developed and estimated an equilibrium model where heterogeneous firms can exploit two margins of informality: (i) not register their business, the extensive margin; and (ii) hire workers "off the books," the intensive margin.
Report SeriesDOI
The Dynamics of Employment Growth: New Evidence from 18 Countries
TL;DR: In this paper, the authors present results from a new OECD project on the dynamics of employment (DynEmp) based on an innovative methodology using firm-level data (i.e. national business registers or similar sources).
References
More filters
Journal ArticleDOI
The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity
TL;DR: This paper developed a dynamic industry model with heterogeneous firms to analyze the intra-industry effects of international trade and showed how the exposure to trade will induce only the more productive firms to enter the export market (while some less productive firms continue to produce only for the domestic market).
Journal ArticleDOI
Estimating and testing linear models with multiple structural changes
Jushan Bai,Pierre Perron +1 more
TL;DR: In this article, the authors developed the statistical theory for testing and estimating multiple change points in regression models, and several test statistics were proposed to determine the existence as well as the number of change points.
Posted Content
The Dynamics Of Productivity In The Telecommunications Equipment Industry
George S Olley,Ariel Pakes +1 more
TL;DR: In this article, the authors developed an estimation algorithm that takes into account the relationship between productivity on the one hand, and both input demand and survival on the other, guided by a dynamic equilibrium model that generates the exit and input demand equations needed to correct for the simultaneity and selection problems.
Journal ArticleDOI
Estimating production functions using inputs to control for unobservables
James Levinsohn,Amil Petrin +1 more
TL;DR: Olley and Pakes as discussed by the authors show that when intermediate inputs (i.e., those inputs which are typically subtracted out in a value-added production function) can also solve this simultaneity problem, and discuss some potential benefits of expanding the choice set of proxies to include these inputs.
Journal ArticleDOI
Export Versus FDI with Heterogeneous Firms
Elhanan Helpman,Elhanan Helpman,Elhanan Helpman,Marc J. Melitz,Marc J. Melitz,Marc J. Melitz,Stephen R. Yeaple +6 more
TL;DR: In this article, Helpman et al. introduce a simple multicountry, multisector model, in which firms face a proximity-concentration trade-off between exports and FDI.
Related Papers (5)
The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity
Policy distortions and aggregate productivity with heterogeneous establishments
Diego Restuccia,Richard Rogerson +1 more