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Dynamics Of Productivity And Cost Of Labour In Italian Manufacturing Firms


  • Giulio Bottazzi
  • Marco Grazzi


type="main"> This paper studies the impact of size on labour cost and productivity for Italian manufacturing firms. The distributions of both labour cost and productivity display a wide support, even when disaggregated by sector of industrial activity. Further, both labour cost and productivity, when considered alone, are growing with the size of the firm. We investigate this relationship on a new set of data and we are able to show that once productivity differences among firms have been accounted for, size still retains a positive effect on cost of labour in most of the sectors considered.

Suggested Citation

  • Giulio Bottazzi & Marco Grazzi, 2014. "Dynamics Of Productivity And Cost Of Labour In Italian Manufacturing Firms," Bulletin of Economic Research, Wiley Blackwell, vol. 66(S1), pages 55-73, December.
  • Handle: RePEc:bla:buecrs:v:66:y:2014:i:s1:p:s55-s73

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    References listed on IDEAS

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    More about this item

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General


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