Employees’ Educational Composition and Firm’s Learning: Evidence from Manufacturing Industries in Iran

Empirical studies have shown that the size distribution of firms can be described a a lognormal or Pareto distribution. However, these studies have focused on developed countries and little attention has been devoted to developing countries. Using the variable of number of employees as a measure of firm size, thi paper investigate the shape of firm size distribution in the food & beverages industry and also in the non-metallic mineral product industry over the period of 1997-2005. Our findings show that there is no universality of the size distribution of firms between industries. In other words, the size distribution varies in terms of kind of industry, so that our results make it clear that food & beverages industry follows lognormal distribution, conversely to other industry which a good representatio of Pareto distribution. From policy point of view, knowledge about firm size distributio caused new entrance firm to decide wisely and therefore provide improvement o performance after entry.

Employees education composition, pareto distribution, firm’s learning, manufacturing industries, Iran.