Production Hierarchies in Sweden

10 Pages Posted: 24 Mar 2013

See all articles by Joacim Tåg

Joacim Tåg

Research Institute of Industrial Economics (IFN)

Date Written: March 15, 2013


I study the internal organization of firms using occupation data on workers in Swedish manufacturing firms. Firms with more layers are larger in size, in value added, and they pay higher wages. Firms are hierarchal in that lower layers have more workers and lower mean wage than higher layers. Adding layers is associated with increases in mean firm size/value added and decreases in mean firm wages (at pre-existing layers). The reverse holds for removing layers. This result also holds for layer by layer mean size and wages for a majority of pre-existing layers.

Keywords: hierarchies, organizations, occupations, wages, productivity

JEL Classification: D22, D24, J31

Suggested Citation

Tåg, Joacim, Production Hierarchies in Sweden (March 15, 2013). IFN Working Paper No. 963, Available at SSRN: or

Joacim Tåg (Contact Author)

Research Institute of Industrial Economics (IFN) ( email )

Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15

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