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Family firms and labour productivity: the role of enterprise-level bargaining in the Italian economy

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  • Damiani, Mirella
  • Pompei, Fabrizio
  • Ricci, Andrea

Abstract

We investigate the role of Italian firms in labour productivity performance. We find that family-owned firms have lower labour productivity than their non-family counterparts. In a second step, we estimate the role of firm-level bargaining (FLB) to determine whether family-controlled firms that adopt this type of bargaining may partially close the gap in terms of labour productivity with their non-family competitors. Our results, obtained through IV estimation to control for endogeneity bias, suggest that enterprises under family governance achieve significant labour productivity gains — greater than those achieved by their non-family counterparts — when they adopt firm-level bargaining.

Suggested Citation

  • Damiani, Mirella & Pompei, Fabrizio & Ricci, Andrea, 2018. "Family firms and labour productivity: the role of enterprise-level bargaining in the Italian economy," MPRA Paper 91329, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:91329
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    Cited by:

    1. Riccardo Leoni, 2018. "Efficienza ed efficacia della contrattazione integrativa aziendale. Una rassegna della letteratura empirica italiana," Economia & lavoro, Carocci editore, issue 1, pages 131-170.
    2. Cirillo, Valeria & Fanti, Lucrezia & Mina, Andrea & Ricci, Andrea, 2023. "The adoption of digital technologies: Investment, skills, work organisation," Structural Change and Economic Dynamics, Elsevier, vol. 66(C), pages 89-105.
    3. Mariarosaria Agostino & Sabrina Ruberto, 2023. "Family Ties, Social Capital and Small Businesses’ Efficiency. Evidence from the Italian Food Sector," Journal of Family and Economic Issues, Springer, vol. 44(4), pages 935-955, December.
    4. Creemers, Sarah & Peeters, Ludo & Quiroz Castillo, Juan Luis & Vancauteren, Mark & Voordeckers, Wim, 2023. "Family firms and the labor productivity controversy: A distributional analysis of varying labor productivity gaps," Journal of Family Business Strategy, Elsevier, vol. 14(2).
    5. Eileen B. Nchanji & Odhiambo A. Collins & Enid Katungi & Agness Nduguru & Catherine Kabungo & Esther M. Njuguna & Chris O. Ojiewo, 2020. "What Does Gender Yield Gap Tell Us about Smallholder Farming in Developing Countries?," Sustainability, MDPI, vol. 13(1), pages 1-18, December.

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    More about this item

    Keywords

    Family firms; corporate governance; labour productivity; firm-level bargaining;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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