Product diversification and labor productivity dispersion in German manufacturing industries

Arbeitspapier

Empirical research has shown tremendous productivity differences, even within narrowly defined industries. A great host of studies is explainsing this productivity disparity by factors such as idiosyncratic technology shocks, input price differences, management skills, or international trade. Although these explanations are undoubtedly important, the current paper suggests that product diversification strategies of firms can also play an important role. Using a matched producer-product panel dataset of German manufacturing industries over the period 2003-2006, we find that the average degree of product diversification across industry establishments is positively related to within-industry labor productivity dispersion.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Jena Economic Research Papers ; No. 2010,028

Classification and Topics

• Classification: Wirtschaft ; Production, Pricing, and Market Structure; Size Distribution of Firms ; Firm Organization and Market Structure ; Firm Performance: Size, Diversification, and Scope
• Subject: Product Diversification ; Productivity ; Industrial Dynamics ; Diversifikation ; Produktivität ; Verarbeitendes Gewerbe ; Deutschland

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Söllner, René
• Event: Veröffentlichung
• (who): Friedrich Schiller University Jena and Max Planck Institute of Economics
• (where): Jena
• (when): 2010

Further information

• Handle: http://hdl.handle.net/10419/32555
• Last update: 10.03.2025, 11:42 AM CET