Publication:
The Role of Firm Dynamics in Aggregate Productivity, Job Flows, and Wage Inequality in Ecuador

Simple item page
dc.contributor.authorPatiño Peña, Fausto
dc.contributor.authorFerro, Esteban
dc.date.accessioned2024-03-27T17:36:15Z
dc.date.available2024-03-27T17:36:15Z
dc.date.issued2024-03-27
dc.description.abstractThis paper examines the role of firm dynamics in aggregate total factor productivity, job flows, and wage inequality in Ecuador. Utilizing a comprehensive employer-employee dataset, the paper documents firm dynamics and job flow patterns that are consistent with the presence of market distortions. Also, the paper identifies factor misallocation as the main contributor to Ecuador's total factor productivity deceleration. Given these trends, the paper explores allocative inefficiency drivers through firm- and industry-level regressions. Firms in the top productivity quintile face distortive non-wage labor costs that are 3.7 times higher than the bottom quintile, after controlling for firm size and age. The findings also provide evidence of credit misallocation across firms. Additionally, industries with higher job mobility, credit access, and competition and lower non-wage labor costs, minimum wage incidence, and zombie firms demonstrate higher allocative efficiency. Moreover, worker-level regressions indicate that misallocation drivers explain up to 41 percent of wage inequality, with non-wage labor costs and product market frictions as distortions driving this inequality.en
dc.identifierhttp://documents.worldbank.org/curated/en/099210003272435670/IDU12ee097181a742148c01b05d15e384067ed0a
dc.identifier.doi10.1596/1813-9450-10739
dc.identifier.urihttps://hdl.handle.net/10986/41297
dc.languageEnglish
dc.language.isoen_US
dc.publisherWashington, DC: World Bank
dc.relation.ispartofseriesPolicy Research Working Paper; 10739
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by/3.0/igo/
dc.subjectFIRM PERFORMANCE
dc.subjectAGGREGATE PRODUCTIVITY
dc.subjectJOB FLOWS
dc.subjectWAGE INEQUALITY
dc.titleThe Role of Firm Dynamics in Aggregate Productivity, Job Flows, and Wage Inequality in Ecuadoren
dc.typeWorking Paper
dspace.entity.typePublication
okr.crossref.titleThe Role of Firm Dynamics in Aggregate Productivity, Job Flows, and Wage Inequality in Ecuador
okr.date.disclosure2024-03-27
okr.date.lastmodified2024-03-27T00:00:00Zen
okr.doctypePolicy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099210003272435670/IDU12ee097181a742148c01b05d15e384067ed0a
okr.guid099210003272435670
okr.identifier.docmidIDU-2ee09718-a742-48c0-b05d-5e384067ed0a
okr.identifier.doi10.1596/1813-9450-10739
okr.identifier.doihttps://doi.org/10.1596/1813-9450-10739
okr.identifier.externaldocumentum34289093
okr.identifier.internaldocumentum34289093
okr.identifier.reportWPS10739
okr.import.id3640
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099210003272435670/pdf/IDU12ee097181a742148c01b05d15e384067ed0a.pdfen
okr.region.administrativeLatin America & Caribbean
okr.region.countryEcuador
okr.sectorCentral Government (Central Agencies)
okr.themeInclusive Growth,Job Creation,Human Development and Gender,Economic Policy,Green Growth,Economic Growth and Planning,Private Sector Development,Regulation and Competition Policy,Labor Market Policy and Programs,Active Labor Market Programs,Jobs,Business Enabling Environment,Structural Transformation and Economic Diversification
okr.topicFinance and Financial Sector Development::Finance and Development
okr.topicSocial Protections and Labor::Labor Management and Relations
okr.topicSocial Protections and Labor::Employment and Unemployment
okr.unitEFI-LCR-MTI-MacroFiscal (ELCMU)
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
Files
Original bundle
Now showing 1 - 2 of 2
Thumbnail Image
Name:
IDU12ee097181a742148c01b05d15e384067ed0a.pdf
Size:
3.9 MB
Format:
Adobe Portable Document Format
Download
No Thumbnail Available
Name:
IDU12ee097181a742148c01b05d15e384067ed0a.txt
Size:
175.81 KB
Format:
Plain Text
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.71 KB
Format:
Plain Text
Description:
Download
Collections
Policy Research Working Papers