5. Conclusion
This paper evaluates the impact of the Peiex program, a consulting service on management and production practices provided by Apex-Brasil aimed at improving the competitiveness of small and medium firms. We found a positive impact of Peiex on firms’ organization. Based on the IV identification strategy, firms that received the program increased by approximately 11.5%, on average, the predicted number of layers of knowledge-based hierarchy. We find that our results are driven by increasing the number of layers of knowledge-based hierarchy for small and medium firms, defined as firms between 10 and less than 100 employees two consecutive years before the program started. In addition, we find that Peiex firms have expanded the hours hired of production workers, the reorganization of those firms is associated with an increase in the likelihood of being an exporter and a rise in wage inequality between layers of hierarchy based on knowledge. Understand whether firms promote lower-level workers or hire new ones when changing the organization of knowledge is an important avenue for future research.