Sorting Within and Across French Production Hierarchies - Groupement de Recherche en Économie Quantitative d'Aix-Marseille Accéder directement au contenu
Pré-Publication, Document De Travail Année : 2015

Sorting Within and Across French Production Hierarchies

Résumé

The objective of this paper is to examine the assignment of workers to layers and firms. In particular, I use an administrative dataset of French workers to study the organization of firms. First, I test whether higher ability workers are employed in the higher layers of firms. Second, I test whether there is positive assortative matching between workers in the different layers of firms. Third, I test whether higher ability workers allow their managers to increase their span of control and employ larger teams. To do this, I first classify employees as residing in different organizational layers such as production and administrative workers, supervisors, senior managers, and owners and CEOs, using occupational codes. From a panel wage regression I then obtain estimates of workers’ ability as in Abowd et al. (1999). I then study how workers sort into layers and across layers with other workers. I emphasize three results. First, higher ability workers are employed in the higher layers of firms. Second, I find evidence of positive assortative matching between workers in the different layers of firms. Third, I find different mechanisms are behind the sorting pattern observed in the data. I find evidence that higher ability workers limit their managers’ span of control, and I also find weak evidence that higher ability workers allow their managers to increase their span of control and employ larger teams.
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Dates et versions

halshs-01163607 , version 1 (15-06-2015)

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  • HAL Id : halshs-01163607 , version 1

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Grigorios Spanos. Sorting Within and Across French Production Hierarchies. 2015. ⟨halshs-01163607⟩
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