The Anatomy of French Production Hierarchies
We use a comprehensive dataset of French manufacturing ﬁrms to study their internal organization. We ﬁrst divide the employees of each ﬁrm into ‘layers’ using occupational categories. Layers are hierarchical in that the typical worker in a higher layer earns more, and the typical ﬁrm occupies less of them. In addition, the probability of adding (dropping) a layer is very positively (negatively) correlated with value added.