Resource misallocation can lower aggregate total factor productivity (TFP). We use micro data on manufacturing …

"Firms in the same industry can differ in measured productivity by multiples of 3. Griliches (1957) suggests one … fixed effects. We show adding human capital variables and the wage bill decreases the ratio of the 90th to 10th productivity … quantiles from 3.27 to 2.68 across eight Danish manufacturing and service industries. The productivity dispersion decrease is …

"Throughout the postwar era until 1995 labor productivity grew faster in Europe than in the United States. Since 1995 …, productivity growth in the EU-15 has slowed while that in the United States has accelerated. But Europe's productivity growth … between the EU and US going back to 1980. This paper is about the strong negative tradeoff between productivity and employment …