Productivity Dispersion: A Case Study in the Finnish Retail Trade

This is the latest version of this item.

Abstract

This paper studies productivity dispersion in a Finnish retail outlet chain. The data cover thirty-three branches of the chain over a period of forty-eight months from January 2002 to December 2005. The data are based on branch-specific observations collected in the same manner in every branch by the parent company. The emphasis is on the following questions: i) How large is the productivity dispersion; ii) Are productivity rankings persistent; iii) How does the dispersion develop over time; and iv) What are the reasons behind the productivity dispersion. Productivity is calculated for each branch as both labor and total factor productivity. We find both productivity measures highly dispersed between the branches over the observation period. Furthermore productivity rankings are persistent in the sense that the weakest branches tend to remain in the lower quintiles while the best performing branches tend to maintain their position in the top performing quintile. In addition the labor productivity dispersion between the quintiles narrows per time as the poorest quintile improves its productivity relative to others. This does not hold as clearly for total factor productivity, however. Accounting for employee skills and human resource management decreases the productivity dispersion only slightly.

Available Versions of this Item

• Productivity Dispersion: A Case Study in the Finnish Retail Trade. (deposited 09 Nov 2009 12:56)
  • Productivity Dispersion: A Case Study in the Finnish Retail Trade. (deposited 01 Dec 2009 19:09) [Currently Displayed]