hiring costs to analyse the link between sectoral resource allocation, low productivity growth and stagnant real wages. My … their labor allocation on aggregate growth. Subsidies to high-productivity sector production can alleviate welfare losses …I propose a two-sector endogenous growth model with heterogeneous sectoral productivity and sector-specific, nonlinear …

allocative efficiency because firms pass-through measured productivity gains into markups. From industry-year variation, there is …

Firm heterogeneity and the allocation of resources across firms play a key role in determining aggregate productivity …. Entry barriers and misallocation can substantially impact productivity, as evidenced in recent work. This article provides a …