The MultiProd project studies productivity patterns and investes the extent to which different policy frameworks can shape firm productivity. It examines the way resources are allocated to more productive firms.
Because employment patterns and productivity growth play a central role in shaping the welfare of societies and the competitiveness of countries, the analysis aims to be a key input for policy makers as firm-level productivity and allocative efficiency are the engines of future growth.
Drawing on the experience of the OECD ‘DynEmp’ (Dynamics of Employment) project, which provided harmonised micro-aggregated data to analyse employment dynamics, the MultiProd project provides cross-country harmonised micro-aggregated data of paramount importance for understanding productivity performances.
Data and Methodology
The project will rely on a distributed microdata methodology, in a similar fashion to the DynEmp project. A software will be sent to countries, and the affiliated researchers in each country will run the code on their confidential microdata ensuring that the aggregated output will respect confidentiality rules. An important aspect of the methodology is to make sure that the data are comparable across countries, subject to data availability.
The data sources used will be production surveys or similar datasets, such as balance sheets and income statements, which contain information on output (production or sales), value added, inputs (employment, capital, intermediates) and labour costs. Wherever possible, they will be matched to social security records or business registers. The match will considerably improve the quality of the analysis as it will provide the weights to correct for the under-representation of certain groups of firms due to the sampling in the production surveys, thereby producing statistics based on representative sample and reliable aggregates.
The output of the project will be a collection of statistics at the detailed sectoral level over the 2000-2012 period (or latest available year, and earlier periods wherever possible), for different variables:
The statistics presented will be collected both at different percentiles of the firm-level productivity distribution and refined by size, age, and ownership categories. The output will include measures of within-industry productivity dispersion and firm-level wage inequality; measures of allocative efficiency; decompositions that will make it possible to quantify the contribution to aggregate productivity level, growth and volatility of different types of firms (e.g. entrants; low vs high productivity firms etc.).
In addition, the software will allow countries to perform empirical analysis within a harmonised framework, with the aim of establishing a set of stylised facts for each country regarding the relationship between productivity and firm characteristics (size, age, previous performance, ownership etc.).
For more information contact us.