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Research Institute of Industrial Economics (IFN) Working Paper Series

No 963:
Production Hierarchies in Sweden

Joacim Tåg ()

Abstract: I study the internal organization of firms using occupation data on workers in Swedish manufacturing firms. Firms with more layers are larger in size, in value added, and they pay higher wages. Firms are hierarchal in that lower layers have more workers and lower mean wage than higher layers. Adding layers is associated with increases in mean firm size/value added and decreases in mean firm wages (at pre-existing layers). The reverse holds for removing layers. This result also holds for layer by layer mean size and wages for a majority of pre-existing layers.

Keywords: Hierarchies; Organizations; Occupations; Wages; Productivity; (follow links to similar papers)

JEL-Codes: D22; D24; J31; (follow links to similar papers)

9 pages, March 19, 2013

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This paper is published as:
Tåg, Joacim, (2013), 'Production Hierarchies in Sweden', Economics Letters, Vol. 121, pages 210-213



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