A 20% productivity gap, in both directions
A firm that needs a "leader" chief executive and hires a "manager" shows 20% lower productivity. Reverse the mismatch and it is 15% lower.
Bandiera, Hansen, Prat & Sadun, Journal of Political Economy 2020; extended NBER w33324, 2025. 4,800 firms across 42 countries.| Mismatch | Productivity |
|---|---|
| Needs a leader, hires a manager | −20% |
| Needs a manager, hires a leader | −15% |