This study investigates the effect of managerial ability on labor productivity by analyzing various methods in the firm … Demerjian et al. (2012), while labor productivity was analyzed using value-added and sales. The authors find that managerial … ability has a positive effect on labor productivity. In other words, the productivity of employees improves with the …

Recent research suggests that much of the cross-firm variation in measured productivity is due to differences in use of … longitudinal earnings records for their employees to study the relationship between productivity, management, worker ability, and … and firm-level productivity in Germany. In our preferred TFP estimates only a small fraction of this correlation is …