Template-Type: ReDIF-Paper 1.0
Author-Name: Dany Bahar
Author-Workplace-Name: Center for International Development at Harvard University
Author-Person: pba1149
Title: The Middle Productivity Trap: Dynamics of Productivity Dispersion
Abstract: Using a worldwide firm-level panel dataset I document a "U-shaped" relationship between productivity growth and baseline levels within each country and industry. That is, fast productivity growth is concentrated at both ends of the productivity distribution. This result serves as a potential explanation to two stylized facts documented in the economic literature: the rising productivity dispersion within narrowly defined sectors, and the increasing market share of few yet highly productive firms.
Creation-Date: 2017-09
Classification-JEL: D2, O3, O4
Keywords: productivity, convergence, divergence, dispersion
Number: 106
Handle: RePEc:glh:wpfacu:106
File-Url: https://growthlab.cid.harvard.edu/files/growthlab/files/productivitygaps_cidrfwp87.pdf
File-Format: application/pdf