Labor Productivity Dynamics in Spain: A Firm-Level Perspective: Spain
Selected Issues Papers, January 20, 2023
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- Labor Productivity Dynamics in Spain: A Firm-Level Perspective: Spain
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Bibliographic details
- Authors: Nicolas Arregui, Yu Shi
- Published: January 20, 2023
- Series: Selected Issues Papers
- DOI: https://doi.org/10.5089/9798400231124.018
Summary
- This paper uses firm-level data that covers over 1.2 million Spanish firms during the period of 2003-2019 to provide an updated assessment of the drivers of labor productivity in the Spanish economy, focusing on both TFP and firm investment.
- The empirical analysis shows significant differences in production constraints in both the capital market and the labor market, across firm size and age.
- The paper includes a review of Spain’s ambitious reform commitments under the Recovery, Transformation and Resilience Plan and concludes with recommendations for further action.
Data and scope
- Data coverage: over 1.2 million Spanish firms.
- Time period analyzed: 2003-2019.
- Focus areas: labor productivity dynamics, Total Factor Productivity (TFP), firm investment, production constraints in capital and labor markets, heterogeneity by firm size and age.
Key findings
- Significant differences exist in production constraints in both the capital market and the labor market across firm size and age.
- Drivers of labor productivity in Spain are assessed through the lens of both TFP and firm investment.
- Spain has undertaken ambitious reform commitments under the Recovery, Transformation and Resilience Plan, which the paper reviews.
Policy recommendations and conclusions
- The paper concludes with recommendations for further action to address the identified production constraints and to support improvements in labor productivity, building on the Recovery, Transformation and Resilience Plan.
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- Labor Productivity Dynamics in Spain: A Firm-Level Perspective