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The role of services sectors for aggregate productivity: A firm-level anatomy of a large panel of European firms

Author

Listed:
  • Bruno Merlevede
  • Annelies Van Maele

Abstract

This paper documents how the composition of value added per worker in Europe is distributed over manufacturing, services, and other industries based on a large panel of firmlevel data. We show that a non-negligible part of value added is accounted for by services industries. We then explore how micro-data at the firm level can be used to analyse this important component of aggregate productivity growth. We further discuss and explore using our data whether semi-parametric estimators of total factor productivity that are commonly found in the literature and typically tailored towards manufacturing are fit for analysing firms services sectors.

Suggested Citation

  • Bruno Merlevede & Annelies Van Maele, 2025. "The role of services sectors for aggregate productivity: A firm-level anatomy of a large panel of European firms," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 25/1109, Ghent University, Faculty of Economics and Business Administration.
  • Handle: RePEc:rug:rugwps:25/1109
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    More about this item

    Keywords

    Productivity slowdown; firm-level data; services industries;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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