--- canonical_url: "https://csls.ca/ipm-archive/ipm-issue-32/productivity-and-reallocation-evidence-from-the-universe-of-italian-firms/" title: "Productivity and Reallocation: Evidence from the Universe of Italian Firms" author: name: "CSLS" url: "https://csls.ca/author/cslc/" date_published: "2026-07-13T07:42:33+00:00" date_modified: "2026-07-13T07:42:33+00:00" post_type: "ipm" summary: "" ipm_issue_period: - "Spring 2017" ipm_keyword: - "2005-2013" - "allocative efficiency" - "Bank of Italy" - "firm-level" - "import competition" - "Italy" - "productivity" - "reallocation" - "universe of firms" ipm_research_theme: - "Sectoral and firm-level dynamics" ipm_country_focus: - "Europe" - "Italy" featured_image: "https://csls.ca/wp-content/uploads/2026/06/IPM_50_banner.webp" status: "publish" --- # Productivity and Reallocation: Evidence from the Universe of Italian Firms Canonical URL: https://csls.ca/ipm-archive/ipm-issue-32/productivity-and-reallocation-evidence-from-the-universe-of-italian-firms/ # Productivity and Reallocation: Evidence from the Universe of Italian Firms [Download full PDF article](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-32-7-Linarello-Petrella.pdf) Cite this article × Cite this article as: Linarello, Andrea, and Andrea Petrella. 2017. “Productivity and Reallocation: Evidence from the Universe of Italian Firms.” International Productivity Monitor, No. 32 (Spring 2017): 116–136. https://www.csls.ca/ipm-archive/ipm-issue-32/productivity-and-reallocation-evidence-from-the-universe-of-italian-firms/ ## Authors: - Andrea Linarello Bank of Italy - Andrea Petrella Bank of Italy ## IPM Issue 32 Spring 2017 pp. 116–136 ## Related IPM articles [The Relationship between Efficiencies Defenses for Mergers and TFP Growth Robin Shaban Fall 2025 | IPM Issue 49 | pp. 82–102](https://csls.ca/ipm-archive/ipm-issue-49/the-relationship-between-efficiencies-defenses-for-mergers-and-tfp-growth/) [Adult Skills and Productivity: New Evidence from PIAAC 2023 Dan Andrews, Balázs Égert, Christine de La Maisonneuve Fall 2025 | IPM Issue 49 | pp. 41–63](https://csls.ca/ipm-archive/ipm-issue-49/adult-skills-and-productivity-new-evidence-from-piaac-2023/) [The Potential Impact of Pro-competitive Regulatory Reforms on Productivity and Growth in Canada Gilbert Cette, Jimmy Lopez, Giuseppe Nicoletti, Océane Vernerey Fall 2025 | IPM Issue 49 | pp. 3–40](https://csls.ca/ipm-archive/ipm-issue-49/the-potential-impact-of-pro-competitive-regulatory-reforms-on-productivity-and-growth-in-canada/) [Appendix: UK Productivity Growth Rates Across Data Vintages and Studies Josh Martin Spring 2025 | IPM Issue 48 | pp. 65–73](https://csls.ca/ipm-archive/ipm-issue-48/appendix-uk-productivity-growth-rates-across-data-vintages-and-studies/) [Opportunities and Risks of Artificial Intelligence for Productivity Francesco Filippucci, Peter Gal, Katharina Laengle, Matthias Schief, Filiz Unsal Spring 2025 | IPM Issue 48 | pp. 1–26](https://csls.ca/ipm-archive/ipm-issue-48/opportunities-and-risks-of-artificial-intelligence-for-productivity/) [Using Ecosystem Accounting to Integrate the Environment in Measures of Multifactor Productivity Carl Obst Fall 2024 | IPM Issue 47 | pp. 87–108](https://csls.ca/ipm-archive/ipm-issue-47/using-ecosystem-accounting-to-integrate-the-environment-in-measures-of-multifactor-productivity/) [Eroding Natural Capital: An Alternative Explanation for the Secular Decline in Productivity Growth Christina Caron Fall 2024 | IPM Issue 47 | pp. 109–147](https://csls.ca/ipm-archive/ipm-issue-47/eroding-natural-capital-an-alternative-explanation-for-the-secular-decline-in-productivity-growth/) [How Does Industrial Policy Impact Output, Hours and Productivity? The Canadian Experience Tim Sargent Fall 2024 | IPM Issue 47 | pp. 39–53](https://csls.ca/ipm-archive/ipm-issue-47/how-does-industrial-policy-impact-output-hours-and-productivity-the-canadian-experience/) [Climate Change and Productivity — An Exploration Dirk Pilat Fall 2024 | IPM Issue 47 | pp. 54–86](https://csls.ca/ipm-archive/ipm-issue-47/climate-change-and-productivity-an-exploration/) [Could Domestic Industrial Policies, Even With Global Fragmentation, Revive Productivity? Catherine Mann Fall 2024 | IPM Issue 47 | pp. 3–19](https://csls.ca/ipm-archive/ipm-issue-47/could-domestic-industrial-policies-even-with-global-fragmentation-revive-productivity/) ## Abstract ## Résumé EN FR Copy link Email LinkedIn This article investigates the contribution of allocative efficiency to aggregate labour productivity growth in Italy between 2005 and 2013. Exploiting a unique dataset that covers the universe of firms, we find that allocative efficiency increased during the period of observation. We show that the dynamics of aggregate labour productivity benefited from the reallocation of resources among continuing firms and from the net effect of business demography. Among industries, we find that reallocation has been stronger in industries that are more exposed to import competition from developing countries. Moreover, we document that the observed adjustments have not evenly affected all firms across the productivity distribution: selection has become tougher for firms belonging to the lower tail, forcing the exit of the least productive firms and favoring the reallocation of the workforce to the best performing ones. Thanks to the increasing availability of firmlevel data, a growing theoretical and empirical Cet article examine la contribution de l’efficience allocative à la croissance de la productivité du travail globale en Italie entre 2005 et 2013. Exploitant un ensemble de données unique couvrant l’univers des entreprises, nous constatons que l’efficience allocative a augmenté au cours de la période d’observation. Nous montrons que la dynamique de la productivité globale du travail a bénéficié de la réaffectation des ressources entre les entreprises en activité et de l’effet net de la démographie des entreprises. Parmi les industries, nous constatons que la réaffectation a été plus forte dans les industries davantage exposées à la concurrence des importations des pays en développement. [Download full PDF](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-32-7-Linarello-Petrella.pdf)