Pre-information notice for a low value contract – Study on: Capital misallocation and skill mismatches in Italy: the productivity conundrum – reference call ECFIN 2014 014/H

The Directorate General for Economic and Financial Affairs (DG ECFIN) is planning to award a contract for a study on "Capital misallocation and skill mismatches in Italy: the productivity conundrum".

The study would seek to provide micro-based evidence of the extent, drivers and consequences of labour and capital misallocation in the Italian economy. The ultimate aim is to uncover the root of Italy’s slow growth since the mid-1990s.

Recent research shows that very heterogeneous firms coexist within the same industry. Understanding the drivers of productivity growth at the firm level is thus necessary to understand the very root of Italy’s economic malaise and competitiveness losses. Moreover, the large number of observations available at the micro level should increase the robustness of the analysis than available ones at macro and sectoral level. The project should cover as a minimum (potential candidates might have additional suggestions):

• Assessment of the extent of the misallocation by looking at correlation/causality between TFP or valued added growth and a set of key explanatory variables in order to identify the most relevant ones. In particular it could focus on: i) investment decisions; ii) IT intensity; iii) characteristics of employees; iv) hiring practices; v) types of contract offered to workers; vi) firm ownership characteristics.
• Understanding the drivers of misallocation by disentangling the different factors listed above (among others).
• Assessment of the impact of misallocation by analysing the effects that resource misallocation at the micro level has at the macro level with an emphasis on TFP growth.
• Draw policy conclusions on how to improve capital and labour allocation in the Italian context.  

The duration of the project is set at approximately 10 months. The budget foreseen is in the range of 35 000 – 50 000 EUR.

DG ECFIN intends to invite potential candidates and send them the tender specifications with full details before the end of October 2014. If you would like to be considered for this contract and to be included in the invitation list, please send your contact details to the following e-mail addresses: ECFIN-finance-unit@ec.europa.eu by Friday 24 October 2014 at the latest, clearly mentioning in the subject line of your e-mail: "Call ECFIN 2014 017/H".

The aforementioned mailbox is reserved solely for requests to be included in the invitation list. Such requests sent to other mailboxes or to Commission staff cannot be accepted. No other communication should be addressed to this mailbox.

For any other information, please contact Mr Dino Pinelli, e-mail dino.pinelli@ec.europa.eu. Candidates are however reminded that at this stage no further details on the tender specifications can be communicated.

This invitation/notice is in no way binding on the European Commission. The Commission's contractual obligation commences only upon signature of the contract with the successful candidate. Up to the point of signature, DG ECFIN may either abandon the procurement or cancel the award procedure, without the candidates being entitled to claim any compensation. Candidates will be notified.