TY  - RPRT
        AU  - Bhattacharya, Dhritiman
AU  - Guner, Nezih
AU  - Ventura, Gustavo
        TI  - Distortions, Endogenous Managerial Skills and Productivity Differences
        PY  - 2011/Sep/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 5963
        UR  - https://www.iza.org/index.php/publications/dp5963
        AB  - We develop a span-of-control model where managerial skills are endogenous and the outcome of investments over the life cycle of managers. We calibrate this model to U.S plant-size data to quantify the effects of distortions that are correlated with the size of production units. These distortions lead to sharp reductions in plant productivity and the fraction of employment in large plants, with a quantitatively important role for managerial investments. We find that the model can account quite well for properties of Japanese size-distribution data, with a model-implied TFP of about 83% of the U.S. Distortions are critical in accounting for the differences in size distribution between the U.S. and Japan.
        KW  - skill investments
KW  - size
KW  - distortions
KW  - productivity differences
        ER  -