The importance of measuring dispersion in firm-level outcomes : ignoring the large variation in firm-level outcomes can create misunderstandings about the consequences of many policies

Chad Syverson (University of Chicago, USA)

Recent research has revealed enormous variation in performance and growth among firms, which both drives and is driven by large reallocations of inputs and outputs across firms (churning) within industries and markets. These differences in firm-level outcomes and the associated turnover of firms affect many economic policies (both labor- and non-labor-oriented), on both a microeconomic and a macroeconomic scale, and are affected by them. Properly evaluating these policies requires familiarity with the sources and consequences of firm-level variation and within-industry reallocation.

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Year of publication:	July 2014
Authors:	Syverson, Chad
Publisher:	Bonn : Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA)
Subject:	microdata \| productivity \| growth \| employment \| churning \| misallocation \| Produktivität \| Productivity \| Unternehmenserfolg \| Firm performance \| Erwerbstätigkeit \| Employment \| Schätzung \| Estimation \| Arbeitsproduktivität \| Labour productivity