Competition and the Dispersion of Labour Productivity amongst UK Companies
AbstractBased on a sample of 140,000 UK companies over the period 1989-93, this paper finds a wide dispersion of labour productivity across firms. Some dispersion is transitory: amongst surviving companies there is regression towards the mean and dispersion falls over time. However, there are significant differences between sectors in the extent of dispersion, e.g. in manufacturing it is 40-50% lower. A possible explanation is greater competition in manufacturing. A role for competition is also suggested by the finding that surviving companies which were initially below the mean improve their performance more rapidly than those initially above the mean.
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Bibliographic InfoPaper provided by National Institute of Economic and Social Research in its series NIESR Discussion Papers with number 103.
Date of creation: Oct 1996
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Other versions of this item:
- Oulton, Nicholas, 1998. "Competition and the Dispersion of Labour Productivity amongst UK Companies," Oxford Economic Papers, Oxford University Press, vol. 50(1), pages 23-38, January.
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