Dynamics of Productivity and Cost of Labor in Italian Manufacturing Firms

Quaderni DSE Working Paper N° 865

20 Pages Posted: 2 Feb 2013

See all articles by Giulio Bottazzi

Giulio Bottazzi

Scuola Superiore Sant'Anna di Pisa - Laboratory of Economics and Management (LEM)

Marco Grazzi

Universita' Cattolica del Sacro Cuore

Date Written: February 1, 2013

Abstract

This paper studies the impact of size on labor cost and productivity for Italian manufacturing firms. The distributions of both labor cost and productivity display a wide support, even when disaggregated by sector of industrial activity. Further, both labor 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 accounted for productivity differences among firms, size still retains a positive effect on cost of labor in most of the sectors considered.

Keywords: size-wage effect, labor productivity

JEL Classification: D21, J31, L11, L60

Suggested Citation

Bottazzi, Giulio and Grazzi, Marco, Dynamics of Productivity and Cost of Labor in Italian Manufacturing Firms (February 1, 2013). Quaderni DSE Working Paper N° 865, Available at SSRN: https://ssrn.com/abstract=2210373 or http://dx.doi.org/10.2139/ssrn.2210373

Giulio Bottazzi (Contact Author)

Scuola Superiore Sant'Anna di Pisa - Laboratory of Economics and Management (LEM) ( email )

Piazza Martiri della Liberta, 33
Pisa, I-56127
Italy
+39-050-883343 (Phone)
+39-050-883344 (Fax)

Marco Grazzi

Universita' Cattolica del Sacro Cuore ( email )

1 Largo A. Gemelli
Milano (Milan), MI Milano 20123
Italy

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