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What Determines Productivity? - University of Chicago

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. They include ele- ments sourced in production practices and therefore over which producers have some direct control, at least in theory as well as from producers' external operat- ing environments.

industry competitors. Productivity is quite lit-erally a matter of survival for businesses. 1.1How Micro-Level Productivity Variation and Persistence Has Influenced Research The discovery of ubiquitous, large, and per - sistent productivity differences has shaped research agendas in a number of fields. Here are some examples of this influence ...

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