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A look at productivity at the firm level in eight French service industries

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  • Jacques Mairesse
  • Elizabeth Kremp

Abstract

In this paper, we take advantage of information collected by the French annual survey of market services to analyze productivity differences and changes among firms in eight major industries (restaurants, hotels, engineering, computer programming, computer processing, legal services, accounting and building cleaning), over the five-year period 1984–1988. We find a pattern of cross-sectional and time-series type estimates of the Cobb-Douglas production function, which is comparable to that typically found in studies of manufacturing industries, thus raising similar issues of interpretation and modeling. Using a capital stock measure corrected for rented equipment and building and taking into account the number of hours of work of work per employee improve these estimates to some extent. An interesting finding is that the output elasticity seems significantly smaller with respect to hours per employee than with respect to the number of employees. Copyright Kluwer Academic Publishers 1993

Suggested Citation

  • Jacques Mairesse & Elizabeth Kremp, 1993. "A look at productivity at the firm level in eight French service industries," Journal of Productivity Analysis, Springer, vol. 4(1), pages 211-234, June.
    • Handle: RePEc:kap:jproda:v:4:y:1993:i:1:p:211-234
    DOI: 10.1007/BF01073474
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    References listed on IDEAS

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    1. Zvi Griliches, 1984. "R&D, Patents, and Productivity," NBER Books, National Bureau of Economic Research, Inc, number gril84-1.
    2. Zvi Griliches, 1992. "Output Measurement in the Service Sectors," NBER Books, National Bureau of Economic Research, Inc, number gril92-1.
    3. Elizabeth Kremp & Jacques Mairesse, 1992. "Dispersion and Heterogeneity of Firm Performances in Nine French Service Industries, 1984-1987," NBER Chapters, in: Output Measurement in the Service Sectors, pages 461-489, National Bureau of Economic Research, Inc.
    4. Gilbert Cette & Brigitte Durand & Thaddée Tyl, 1986. "Réorganiser le travail : une solution pour l'emploi ?," Économie et Statistique, Programme National Persée, vol. 184(1), pages 3-23.
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    Cited by:

    1. Böckerman, Petri & Maliranta, Mika, 2006. "The Micro-level Dynamics of Regional Productivity Growth: The Source of Divergence in Finland Revised," Discussion Papers 1038, The Research Institute of the Finnish Economy.
    2. Bockerman, Petri & Maliranta, Mika, 2007. "The micro-level dynamics of regional productivity growth: The source of divergence in Finland," Regional Science and Urban Economics, Elsevier, vol. 37(2), pages 165-182, March.
    3. Maliranta, Mika, . "Micro Level Dynamics of Productivity Growth. An Empirical Analysis of the Great Leap in Finnish Manufacturing Productivity in 1975-2000," ETLA A, The Research Institute of the Finnish Economy, number 38, June.
    4. Fornaro, Paolo & Luomaranta, Henri, 2017. "Small and Medium Firms, Aggregate Productivity and the Role of Dependencies," ETLA Working Papers 47, The Research Institute of the Finnish Economy.
    5. Elizabeth Kremp, 1995. "Nettoyage de fichiers dans le cas de données individuelles : recherche de la cohérence transversale," Économie et Prévision, Programme National Persée, vol. 119(3), pages 171-193.
    6. Loof, Hans & Heshmati, Almas, 2002. "Knowledge capital and performance heterogeneity: : A firm-level innovation study," International Journal of Production Economics, Elsevier, vol. 76(1), pages 61-85, March.
    7. Almas Heshmati, 2003. "Productivity Growth, Efficiency and Outsourcing in Manufacturing and Service Industries," Journal of Economic Surveys, Wiley Blackwell, vol. 17(1), pages 79-112, February.
    8. Mika Maliranta, 2005. "R&D, International Trade and Creative Destruction—Empirical Findings from Finnish Manufacturing Industries," Journal of Industry, Competition and Trade, Springer, vol. 5(1), pages 27-58, January.
    9. Hyytinen, Ari & Maliranta, Mika, 2011. "Firm Lifecycles and External Restructuring," Discussion Papers 1253, The Research Institute of the Finnish Economy.
    10. Maliranta, Mika, 1998. "Factors of Productivity Performance by Plant Generation:Some findings from Finnish manufacturing," Discussion Papers 634, The Research Institute of the Finnish Economy.
    11. Maliranta, Mika, 2002. "From R&D to Productivity Through Micro-Level Restructuring," Discussion Papers 795, The Research Institute of the Finnish Economy.

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