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Frontier firms and followers in the Netherlands: estimating productivity and identifying the frontier

This study shows that constructing a large dataset, which sufficiently covers all firm sizes, is a prerequisite for studying the divergence hypothesis. We merge datasets of individual firm and employee data in the years 20062015 for the Netherlands, resulting in a representative sample of corporations. We find no evidence of diverging productivity between firms on the national frontier and laggard firms.

CPB Background Document | 2 July 2018

60 pages | pdf document, 5.2 MB

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