Productivity & International Management Heterogeneity

Here is a chart from John Van Reenen’s recent paper on management as a technology. It shows that the distribution of survey-assessed management quality across firms varies quite a bit across countries. In the US, you see much fewer poorly managed firms around than say in India. Using some back of the envelope guesses, they say management practices could explain up to a third of TFP differences across countries.

mgt_hetero

 

 

 

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About ozidar

I'm an Assistant Professor of Economics at the University of Chicago Booth School of Business and a Faculty Research Fellow at National Bureau of Economic Research. You can follow me on twitter @omzidar. http://faculty.chicagobooth.edu/owen.zidar/index.html
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