Monday, November 20th 2017 –  13:00 – 14:00

Maison des Sciences Économiques, Room S/3

 Maison des Sciences Économiques, 106-112 bd de l’Hôpital, 75013 Paris, Métro 5 Campo Formio, bus 57, 67, 27, 83 ou 47

Giuseppe Berlingieri
(ESSEC business school & OECD)
with Sara Calligaris (OECD) and Chiara Criscuolo (OECD)

 

Does the Sector Matter? Unbundling the Size-Productivity-Wage Premium

 

Abstract: Ever since Moore (1911) a large empirical and theoretical literature has established the existence of a firm size-wage premium. At the same time, a second regularity in empirical work, linking size and productivity, has inspired a vast literature in multiple fields. However, the majority of the existing evidence is based on manufacturing data only. With manufacturing nowadays accounting for a very small share of the economy in many countries, whether productivity, size, and wages are closely linked, and how tight this link is across sectors, is still an open question.
Using a unique dataset that collects micro-aggregated firm-level information on productivity, size, and wages for the entire economy in 14 countries over the 1994-2012 period, this paper unveils a much more subtle picture. First, while in the manufacturing sector both productivity and wages increase monotonically with firm size, the same is not true in the service sector. Second, a tight and positive link between wages and productivity is instead found in both manufacturing and services. The combination of these results suggests that, when looking at data for a much larger share of the economy, the “size-wage premium” becomes more a “productivity-wage premium”. Unbundling the relationship between size, wages, and productivity has first-order policy implications for both workers and firms.

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     Monday, November 6th 2017 –  13:00 – 14:00

Maison des Sciences Économiques, Room S/3

 Maison des Sciences Économiques, 106-112 bd de l’Hôpital, 75013 Paris, Métro 5 Campo Formio, bus 57, 67, 27, 83 ou 47

José de Sousa
(RITM, Université Paris-Sud)
with Thierry Mayer (SciencesPo) and Eve Sihra (Hebrew University)

 

Market Integration and Convergence in Consumption Patterns

 

Abstract: This paper explores whether market integration makes culture converge. Using household survey data on food consumption in France from 1974 to 2005, we find that (1) France is characterized by strong localized tastes, which (2) converge over time, but (3) this convergence is not only due to price and income convergence: in short, France becomes “flatter”, more homogenized. We use an Almost Ideal Demand System to identify regional residual parameters after taking into account price and income effects. These residuals allow us to compute a bilateral taste distance that we regress on bilateral trade costs, conditioning on region fixed effects. We find that distance in taste is positively correlated with trade costs, but with a decreasing effect over time, supporting evidence of a culture convergence.