The Firm Size Distribution across Countries and Skill-Biased Change in Entrepreneurial Technology

Poschke, Markus

doi:10.1257/mac.20140181

Cited by 88 publications

(95 citation statements)

References 59 publications

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“…Assuming a correlation between energy use and GDP, then the evidence presented here is consistent with previous research that has focused on the relation between firm size and GDP per capita [18,20,[29][30][31]. However, my focus here on energy use (rather than GDP) is intentional: it is part of a larger effort to ground economic theory in the laws of thermodynamics [32], and to root empirical analysis in biophysical (rather than monetary) phenomena [33][34][35][36].…”

Section: The Mean Firm Size Increases;supporting

confidence: 88%

Energy and Institution Size

Fix

2016

SSRN Journal

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Why do institutions grow? Despite nearly a century of scientific effort, there remains little consensus on this topic. This paper offers a new approach that focuses on energy consumption. A systematic relation exists between institution size and energy consumption per capita: as energy consumption increases, institutions become larger. I hypothesize that this relation results from the interplay between technological scale and human biological limitations. I also show how a simple stochastic model can be used to link energy consumption with firm dynamics.

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Section: The Mean Firm Size Increases;supporting

confidence: 88%

Energy and Institution Size

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2016

SSRN Journal

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“…Hsieh and Klenow [2009] consider how distortions affecting marginal products of labor and capital lead to a departure from an efficient firm size distribution. Other explanations rely on policy aspects (e.g., Guner et al [2008]), institutions (e.g., Grobovsec [2013]), or technology (e.g., Poschke [2011]). Antunes and Cavalcanti [2007] and Amaral and Quintin [2006] highlight the role of informality in Latin America.…”

mentioning

confidence: 99%

“…We consider two measures of educational attainment: completed secondary education and some college, and completed tertiary education. According to Poschke [2011], there is a strong relationship between the average firm size in a country and its income per capita. We therefore control for the log of GDP per capita and the log of the population size.…”

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confidence: 99%

Human capital and the size distribution of firms

Gomes

Kuehn

2017

Review of Economic Dynamics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. The shortage of skilled workers limits the growth of more productive firms. Two factors influence the availability of skilled workers: i) the education level of the workforce and ii) large public sectors that predominantly hire individuals with a better education. We set up a model economy with a government and private firm formation where production requires unskilled and skilled jobs. Workers with a secondary education are pivotal as they can perform both types of jobs. We find that level of education and public sector employment account for 40-45% of the differences between the United States and Mexico in terms of average firm size, GDP per capita, and GDP per hour worked. We also show that the impact of public employment on skill premiums and productivity measures depends on the skill bias in public hiring.JEL Classification: J24, J45, E24, H30, O11

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“…Finally, as discussed by Poschke (2015), the average size of firms increased substantially in the last century, as did their dispersion -increasing the skewness of the size distribution. Figure 10b plots the average of both the within run average and standard deviation of firms across 25 replications.…”

mentioning

confidence: 89%

“…A trend common to both these aspects is the increasing firm's size. It has been shown that average firm size increases with national per capita income (Poschke, 2015) and market concentration (The Economist, 2016), and is correlated to wage dispersion (Mueller et al, 2015) and CEOs' pay rises (Frydman and Jenter, 2010). OECD (2017) suggests that recent innovations have increased market concentration and that the innovation rents have been redistributed to shareholders and managers.…”

Section: Introductionmentioning

confidence: 99%

Structural changes and growth regimes

et al. 2018

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We study the relation between income distribution and growth, mediated by structural changes on the demand and supply sides. Using the results from a multi-sector growth model, we compare two growth regimes that differ in three aspects: labour relations, competition and consumption patterns. Regime one, similar to Fordism, is assumed to be relatively less unequal, more competitive and to have more homogeneous consumers than regime two, which is similar to post-Fordism. We analyse the parameters that define the two regimes to study the role of the economy's exogenous institutional features and endogenous structural features on output growth, income distribution, and their relation. We find that regime one exhibits significantly lower inequality, higher output and productivity and lower unemployment compared to regime two, and that both institutional and structural features explain these differences. Most prominent among the first group are wage differences, accompanied by capital income and the distribution of bonuses to top managers. The concentration of production magnifies the effect of wage differences on income distribution and output growth, suggesting the relevance of competition norms. Among structural determinants, firm organisation and the structure of demand are particularly relevant. The way that final demand is distributed across sectors influences competition and overall market concentration; demand from the least wealthy classes is especially important. We show also the tight linking between institutional and structural determinants. Based on this linking, we conclude by discussing a number of policy implications that emerge from our model.

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The Firm Size Distribution across Countries and Skill-Biased Change in Entrepreneurial Technology

Cited by 88 publications

References 59 publications

Energy and Institution Size

Energy and Institution Size

Human capital and the size distribution of firms

Structural changes and growth regimes

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