Monday, March 5, 2012

Size and productivity

I want to share with you this interesting graph about regulations in employment market and the disadvantages it carries when talking about productivity and economies of scale.
How can we be more productive while dealing with national regulations regarding to company's size?


Why are Greece, Portugal, Italy and Spain in trouble? Well, as you can see, there are some reasons appart from public debt. The atomisation of the market in these countries is literally killing them.
In the third graph we can see that the added value per employee is twice in big companies than in small ones.
This is not just due to economies of scale, but to the whole system.
As you can see, the regulation in France, as it happens in other countries, makes specially difficult to have companies with more than 50 employees. This fact, joined to the structural atomisation of PIGS's market, makes almost imposible to an average company to compete and paints in dark Europe's future.

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