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Companies that hire consulting firms see large increases in labor productivity and also large increases of wages, with no decline in labor share or value added.
It seems like a lot of the more nihilist theories of why companies hire consultants are not true on average!
28.7.2025
New paper:
"What Does Consulting Do?"
w/ Gert Bijnens, @simon_jaeger
Consulting is a storied but opaque industry.
Our VAT-based B2B data permit the 1st comprehensive study:
Which firms buy consulting?
What happens when they do?
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