Article Type
Research Article
Publication Title
American Economic Review
Abstract
Partnering with the US Census Bureau, we implement a new survey of "structured" management practices in two waves of 35,000 manufacturing plants in 2010 and 2015. We fnd an enormous dispersion of management practices across plants, with 40 percent of this variation across plants within the same frm. Management practices account for more than 20 percent of the variation in productivity, a similar, or greater, percentage as that accounted for by R&D, ICT, or human capital. We fnd evidence of two key drivers to improve management. The business environment, as measured by right-to-work laws, boosts incentive management practices. Learning spillovers, as measured by the arrival of large "Million Dollar Plants" in the county, increases the management scores of incumbents.
First Page
1648
Last Page
1683
DOI
10.1257/aer.20170491
Publication Date
1-1-2019
Recommended Citation
Bloom, Nicholas; Brynjolfsson, Erik; Foster, Lucia; Jarmin, Ron; Patnaik, Megha; Saporta-Eksten, Itay; and Van Reenen, John, "What drives differences in management practices?" (2019). Journal Articles. 1046.
https://digitalcommons.isical.ac.in/journal-articles/1046
Included in
Agricultural and Resource Economics Commons, Behavioral Economics Commons, Growth and Development Commons, Income Distribution Commons, Public Economics Commons
Comments
Open Access, Bronze, Green