Management Practices and Productivity in Germany

38 Pages Posted: 21 Nov 2016

See all articles by Sandra Broszeit

Sandra Broszeit

Government of the Federal Republic of Germany - Institute for Employment Research (IAB)

Ursula Fritsch

Kiel Institute for the World Economy

Holger Görg

University of Kiel; Kiel Institute for the World Economy

Marie-Christine Laible

Government of the Federal Republic of Germany - Institute for Employment Research (IAB)

Abstract

Based on a novel dataset, the "German Management and Organizational Practices" (GMOP) Survey, we calculate establishment specific management scores following Bloom and van Reenen as indicators of management quality. We find substantial heterogeneity in management practices across establishments in Germany, with small firms having lower scores than large firms on average. We show a robust positive and economically important association between the management score and establishment level productivity in Germany. This association increases with firm size. Comparison to a similar survey in the US indicates that the average management score is lower in Germany than in the US. Overall, our results point towards lower management quality being at least in part to blame for the differences in aggregate productivity between Germany and the US.

Keywords: management practices, firm performance, labor productivity, GMOP, MOPS

JEL Classification: D24, L2, M2

Suggested Citation

Broszeit, Sandra and Fritsch, Ursula and Gorg, Holger and Laible, Marie-Christine, Management Practices and Productivity in Germany. IZA Discussion Paper No. 10370, Available at SSRN: https://ssrn.com/abstract=2872627 or http://dx.doi.org/10.2139/ssrn.2872627

Sandra Broszeit (Contact Author)

Government of the Federal Republic of Germany - Institute for Employment Research (IAB) ( email )

Regensburger Str. 104
Nuremberg, 90478
Germany

Ursula Fritsch

Kiel Institute for the World Economy ( email )

P.O. Box 4309
Kiel, Schleswig-Hosltein D-24100
Germany

Holger Gorg

University of Kiel ( email )

Olshausenstr. 40
D-24118 Kiel, Schleswig-Holstein 24118
Germany

Kiel Institute for the World Economy ( email )

P.O. Box 4309
Kiel, Schleswig-Hosltein D-24100
Germany

Marie-Christine Laible

Government of the Federal Republic of Germany - Institute for Employment Research (IAB) ( email )

Regensburger Str. 104
Nuremberg, 90478
Germany

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
183
Abstract Views
1,188
Rank
297,507
PlumX Metrics