Research Seminar, Sarah GUILLOU
January 5, 2017 - 14:00
Speaker: Sarah Guillou (OFCE)
“Firm Export Diversification and Labor Organization”
Venue: GREDEG, Sophia-Antipolis - room Picasso
Abstract: We investigate the relationship between a firm's organization of labor -- defined as its number of hierarchical 'layers' -- and the scope of its export portfolio in terms of product-destination varieties. The empirical analysis is based on a matched employer-employee dataset covering the population of French manufacturing firms over the period 2009-2013. Our analysis suggests that market expansion, and in particular export diversification, is associated with a change in firm labor organization, namely an increase in the number of hierarchical layers, in the share of managers and in wage dispersion. We show how these results are consistent with a simple model where the complexity of a firm's operations increases in the number of product-destination couples exported, and where managers' role is to address some of the problems arising from increased complexity of operations.
Co-authored with Tania Treibich (University of Maastricht)