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The anatomy of french production hierarchies

Author(s): Caliendo, Lorenzo; Monte, Ferdinando; Rossi-Hansberg, Esteban A.

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Abstract: © 2015 by The University of Chicago. All rights reserved. We study the internal organization of French manufacturing firms. We 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. The probability of adding/dropping a layer is positively/negatively correlated with value added. Reorganization, through changes in layers, is essential to understanding how firms grow. Firms that expand substantially add layers and pay lower average wages in all preexisting layers. In contrast, firms that expand little and do not reorganize pay higher average wages in all preexisting layers.
Publication Date: 9-Jul-2015
Citation: Caliendo, L, Monte, F, Rossi-Hansberg, E. (2015). The anatomy of french production hierarchies. Journal of Political Economy, 123 (4), 809 - 852. doi:10.1086/681641
DOI: doi:10.1086/681641
ISSN: 0022-3808
EISSN: 1537-534X
Pages: 809 - 852
Type of Material: Journal Article
Journal/Proceeding Title: Journal of Political Economy
Version: Final published version. Article is made available in OAR by the publisher's permission or policy.

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