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Regional productivity differences in the UK and France - from the micro to the macro

Author

Listed:
  • Bridget Kauma

    (University of Sussex)

  • Giordano Mion

    (ESSEC Business School)

Abstract

We propose a new data resource that attempts to overcome limitations of standard firm-level datasets for the UK (like the ARD/ABS) by building on administrative data covering the population of UK firms with at least one employee. We also construct a similar dataset for France and use both datasets to: 1) Provide some highlights of the data and an overall picture of the evolution of aggregate UK and French productivity and markups: 2) Analyse the spatial distribution of productivity in both countries at a fine level of detail - 228 Travel to Work Areas (TTWAs) for the UK and 297 Zones da'emploi (ZEs) for France - while focusing on the role of economic density. Our findings suggest that differences in firm productivity across regions are magnified in the aggregate by an increasing productivity return of density along the productivity distribution.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Bridget Kauma & Giordano Mion, 2023. "Regional productivity differences in the UK and France - from the micro to the macro," Working Papers 039, The Productivity Institute.
    • Handle: RePEc:anj:wpaper:039
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    References listed on IDEAS

    as
    1. Pierre‐Philippe Combes & Gilles Duranton & Laurent Gobillon & Diego Puga & Sébastien Roux, 2012. "The Productivity Advantages of Large Cities: Distinguishing Agglomeration From Firm Selection," Econometrica, Econometric Society, vol. 80(6), pages 2543-2594, November.
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    4. Emanuele Forlani & Ralf Martin & Giordano Mion & Mirabelle Muûls, 2023. "Unraveling Firms: Demand, Productivity and Markups Heterogeneity," The Economic Journal, Royal Economic Society, vol. 133(654), pages 2251-2302.
    5. Ciccone, Antonio, 2002. "Agglomeration effects in Europe," European Economic Review, Elsevier, vol. 46(2), pages 213-227, February.
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    9. Wooldridge, Jeffrey M., 2009. "On estimating firm-level production functions using proxy variables to control for unobservables," Economics Letters, Elsevier, vol. 104(3), pages 112-114, September.
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    11. Jacob, Nick & Mion, Giordano, 2020. "On the productivity advantage of cities," LSE Research Online Documents on Economics 108436, London School of Economics and Political Science, LSE Library.
    12. Chad Syverson, 2011. "What Determines Productivity?," Journal of Economic Literature, American Economic Association, vol. 49(2), pages 326-365, June.
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    More about this item

    Keywords

    Firm-level dataset; Merging; BSD; FAME; VAT; FICUS; FARE; Productivity; Markups; UK; France; regional disparities; density;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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