Authors: Harro van Heuvelen, Leon Bettendorf, Gerdien Meijerink
Published: July, 2018

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.

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