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Management Practices and Productivity in Germany

Author

Listed:
  • Sandra Broszeit
  • Marie‐Christine Laible
  • Ursula Fritsch
  • Holger Görg

Abstract

Based on a novel dataset, the ‘German Management and Organizational Practices’ (GMOP) Survey, we calculate establishment‐specific management scores following Bloom and van Reenen as indicators of management quality. We find substantial heterogeneity in management practices across establishments in Germany, with small establishments having lower scores than large establishments on average. We show a robust positive and economically important association between the management score and establishment level productivity in Germany. This association increases with establishment size. Comparison to a similar survey in the United States indicates that the average management score is lower in Germany than in the United States. Overall, our results point toward lower management quality being at least in part to blame for the differences in aggregate productivity between Germany and the United States.

Suggested Citation

  • Sandra Broszeit & Marie‐Christine Laible & Ursula Fritsch & Holger Görg, 2019. "Management Practices and Productivity in Germany," German Economic Review, Verein für Socialpolitik, vol. 20(4), pages 657-705, November.
    • Handle: RePEc:bla:germec:v:20:y:2019:i:4:p:e657-e705
    DOI: 10.1111/geer.12187
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    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics

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