We use a proprietary dataset on the floor-level operations at the
largest rail mill in India to study the response of productivity to the
threat of entry. Output per active shift increased by 28 percent over
3 years with minimal changes in physical capital and employment.
By combining data on the timing of various training programs in the
mill with shift-level variation in worker composition, we are able
to attribute over half of the higher productivity to training specifically
targeted toward improving rail output. Our work suggests high
returns to knowledge-enhancing investment in emerging economies.
(JEL D22, D24, J24, L23, L32, L61, O14)
Das, Sanghamitra, Kala Krishna, Sergey Lychagin, and Rohini Somanathan.
"Back on the Rails: Competition and Productivity in State-Owned Industry."
American Economic Journal: Applied Economics,
Firm Behavior: Empirical Analysis
Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
Human Capital; Skills; Occupational Choice; Labor Productivity
Organization of Production
Public Enterprises; Public-Private Enterprises
Metals and Metal Products; Cement; Glass; Ceramics
Industrialization; Manufacturing and Service Industries; Choice of Technology