Caliendo, Lorenzo; Monte, Ferdinando; Rossi-Hansberg, … - C.E.P.R. Discussion Papers - 2012
We use a comprehensive dataset of French manufacturing firms to study their internal organization. We first divide the … reorganization, through changes in layers, is key to understand how firms expand and contract. For example, we find that firms that … expand substantially add layers and pay lower average wages in all pre-existing layers. In contrast, firms that expand little …