Titelaufnahme

Titel
Productivity dynamics : the role of competition in a service industry / Thomas Breda (Paris School of Economics and IZA), Alex Bryson (University College London, NIESR and IZA), John Forth (Cass Business School, NIESR and IZA) ; IZA Institute of Labor Economics
VerfasserBreda, Thomas ; Bryson, Alex ; Forth, John
KörperschaftForschungsinstitut zur Zukunft der Arbeit
ErschienenBonn, Germany : IZA Institute of Labor Economics, November 2019
Ausgabe
Elektronische Ressource
Umfang1 Online-Ressource (42 Seiten)
SerieDiscussion paper ; no. 12809
URNurn:nbn:de:hbz:5:2-205339 
Zugriffsbeschränkung
 Das Dokument ist öffentlich zugänglich im Rahmen des deutschen Urheberrechts.
Volltexte
Productivity dynamics [0.7 mb]
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Zusammenfassung

Using panel data for nearly all service providers in a single industry sector, we examine productivity responses to changes in competition in the United States. The sector offers workplace employee representation through trade union branches which compete with one another for union members whose subscriptions they depend on to cover costs. As such, they have an interest in maximising productivity. Ours is the first study to measure service industry productivity using both price and quantity metrics. Consistent with manufacturing studies, we find market entrants have lower prices and higher Total Factor Productivity (TFP) than incumbents. Increased competition from new entrants leads incumbents to reduce the price of union membership; exit rates then rise among incumbents with the lowest prices who are constrained in adjusting their prices downwards. Those with higher TFP have higher survival probabilities. However, increased competition does not induce incumbents to raise their TFP. These findings are consistent with a market in which incumbents learn about market conditions but face high switching costs limiting their ability to invest in the new techniques that underpin the higher TFP of new entrants.