We construct a dynamic assignment model that explains persistent productivity differences between firms. Large expected … sluggish movement of expected productivity that occurs through this positive feedback can play a role similar to an unobserved … fixed effect in the productivity dynamics. Our calibration exercises suggest that the proposed feedback accompanied by …

and older vintages of fixed capital. To restore economic dynamism, Japan must encourage productivity growth. Using panel … quality of labor and capital that influence productivity. Our research contributes three significant findings. (1) The older … the average age of a firm’s employees or the longer their seniority, the higher the firms productivity growth, but it is …