PUBLICATIONS:

Organization & Density-Related Differences in Firm-Level Wage Disparities?, Regional Science and Urban Economics 95, July 2022. (Working Paper version: paper.pdf)


Abstract: This paper examines differences in within-firm wage disparities across French employment areas. Using administrative data, my analysis first documents that wage disparities are larger within firms operating in denser employment areas: a 100% increase in the employment density of an area is associated with a 0.015 log point increase in the 95/5 hourly wage ratio within firms. My analysis also examines the extent to which differences in the internal organization of labor into layers of hierarchy account for these disparities. I find that firms in denser employment areas organize into a greater number of layers, and that wage disparities are larger in firms with more layers. Finally, I conclude that firm organization is important: local differences in firm organization account for 31.3% to 50.0% of the cross-sectional relationship between the employment density of areas and the log of the 95/5 hourly wage ratio within firms, and 12.2% of the same relationship estimated within firms. A separate analysis conducted with the standard deviation of log hourly wages leads to similar conclusions.

Firm Organization and Productivity across Locations, Journal of Urban Economics, 112, July 2019: 152-168. (Working Paper version: paper.pdf)

Note: previously circulated as The Impact of Market Size on Firm Organization and Productivity.

Abstract: This paper provides a new mechanism to explain variation in firm productivity across locations: variation in the internal organization of labor into hierarchical layers, which are associated with different responsibilities within the firm. To guide my analysis, I develop a theoretical model that yields two implications. First, firms in larger markets organize into a greater number of layers. Second, because they have more layers, firms in larger markets are more productive. I then use administrative data to examine the model's implications across French employment areas and non-tradeable service industries that satisfy the model's assumptions: Clothing and Shoe Retail, Traditional Restaurants, and Hair and Beauty Salons. The findings are consistent with the model. I also observe that 8.8% to 22.4% of the log productivity gains from denser areas arise from differences in the organization of firms. A separate analysis shows that results are similar across firms operating in the manufacturing sector.

Organization and Export Performance, Economic Letters, 146, September 2016: 130-134.

Abstract:  This paper presents new facts on firms' internal organization and their export performance. I find an ordering of the distribution of organizations and, both across and within firms, firms' number of layers is positively correlated with their export performance.