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© 2023 International Monetary Fund
SIP/2023/012
IMF Selected Issues Paper
European Department
Labor Productivity Dynamics in Spain: A Firm-Level Perspective
Prepared by Nicolas Arregui and Yu Shi
Authorized for distribution by Dora Iakova
January 2023
IMF Selected Issues Papers are prepared by IMF staff as background documentation for periodic consultations with member countries. It is based on the information available at the time it was completed on December 16, 2022. This paper is also published separately as IMF Country Report No 23/034.
ABSTRACT: 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. This paper also includes a review of Spain’s ambitious reform commitments under the Recovery, Transformation and Resilience Plan and concludes with recommendations for further action.
RECOMMENDED CITATION: Arregui, Nicolas and Shi, Yu. Labor Productivity Dynamics in Spain: A Firm-level Perspective. IMF Selected Issues Paper (SIP/2023/012). Washington, D.C.: Internationa Monetary Fund.
| JEL Classification Numbers: | D24; D25; E22; E23; E24; O47 |
| Keywords: | Productivity financial constraint; firm size; competition; labor regulation |
| Author’s E-Mail Address: | NArregui@imf.org; YShi2@imf.org |
| JEL Classification Numbers: | D24; D25; E22; E23; E24; O47 |
| Keywords: | Productivity financial constraint; firm size; competition; labor regulation |
| Author’s E-Mail Address: | NArregui@imf.org; YShi2@imf.org |
Title Page
SELECTED ISSUES PAPERS
Labor Productivity Dynamics in Spain: A Firm-Level Perspective
SPAIN
Title Page
SPAIN
SELECTED ISSUES
December 16, 2022
Approved By
European Department
Prepared By Nicolas Arregui and Yu Shi.
Contents
LABOR PRODUCTIVITY DYNAMICS IN SPAIN: A FIRM-LEVEL PERSPECTIVE
A. Introduction
B. Data and Empirical Strategy
C. Results
D. Recent Policies to Promote Productivity Growth
E. Conclusion
ANNEXES
I. Data Coverage and Sample Selection
II. Definition of Variables and Summary Statistics
References