Transcription of What Determines Productivity?
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What Determines Productivity?
Journal of Economic Literature 2011, 49:2, 326 365. What Determines productivity ? Chad Syverson*. Economists have shown that large and persistent differences in productivity levels across businesses are ubiquitous. This finding has shaped research agendas in a num- ber of fields, including (but not limited to) macroeconomics, industrial organization, labor, and trade. This paper surveys and evaluates recent empirical work address- ing the question of why businesses differ in their measured productivity levels. The causes are manifold, and differ depending on the particular setting.
Section 3 looks at influences on productivity that operate primarily within the business. This can be at the firm level, plant level, or even on specific processes within the firm. Many of these influences may potentially be under the control of the economic actors inside the business. In other words, they can
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