The Growth of Managers: An Update

In The Growth of Hierarchy and the Death of the Free Market, I looked at how the number of managers grows with energy use. The growth of managers, I argued, signalled the death of the free market. As countries develop, they replace small-scale competition with large-scale hierarchy.

My analysis culminated in the figure below, which compares the management share of employment to energy use per capita. Each dot represents a country in a given year.

managers_v_energy

Figure 1: The growth of management with energy use. As energy use increases, the management share of employment grows as well. Black dots represent individual countries. The red line shows historical trends in the United States. The rainbow shows the hierarchy model’s prediction. Color indicates the span of control in the model. Management data is from ILOSTAT. Energy use data is from the World Bank. For US data sources, see Energy and Institution Size.

Some readers have asked to know the countries behind each data point. To show you which country is which, I’ve created the figure below. It replaces points with ISO country codes. To simplify things, I’ve included only one observation for each country. (Figure 1 plots observations for all countries in all years with available data).

Management share of employment vs. energy use per capita

Figure 2: The growth of management with energy use. Countries are indicated by their ISO code.

Since you may not be familiar with country codes, I’ve included the table below that matches codes with countries. In case you’re interested, I’ve included the raw data as well.


Country Code Country Year Energy use per capita (GJ) Managers Employment Share (%)
AGO Angola 1991 23.10 8.70
ALB Albania 1991 27.00 2.90
ARE United Arab Emirates 1991 502.20 9.00
ARG Argentina 1991 62.90 6.80
ARM Armenia 1991 100.10 4.70
AUS Australia 1991 209.40 10.50
AUT Austria 1991 146.00 5.40
AZE Azerbaijan 1991 132.30 1.80
BEL Belgium 1991 212.60 6.70
BEN Benin 1991 16.80 0.70
BGD Bangladesh 1991 7.90 0.40
BGR Bulgaria 1991 109.30 8.70
BHR Bahrain 1991 426.30 7.30
BHS Bahamas, The 2004 89.30 8.00
BIH Bosnia and Herzegovina 1991 63.60 5.30
BLR Belarus 1991 185.10 10.70
BLZ Belize 2004 26.60 10.00
BOL Bolivia 1991 19.20 1.40
BRA Brazil 1991 42.40 6.70
BRB Barbados 2004 60.50 9.30
BRN Brunei Darussalam 1991 310.10 4.20
BTN Bhutan 2004 14.80 1.70
BWA Botswana 1991 39.70 2.80
CAN Canada 1991 316.30 10.50
CHE Switzerland 1991 155.30 4.40
CHL Chile 1991 47.60 5.80
CHN China 1991 33.90 1.00
CIV Cote d’Ivoire 1991 17.80 1.20
CMR Cameroon 1991 20.50 3.10
COD Congo, Dem. Rep. 1991 16.80 1.70
COG Congo, Rep. 1991 16.80 1.90
COL Colombia 1991 32.40 6.00
COM Comoros 2004 5.40 1.50
CPV Cabo Verde 2004 11.00 3.40
CRI Costa Rica 1991 26.50 2.30
CUB Cuba 1991 59.60 3.80
CYP Cyprus 1991 77.50 1.50
CZE Czech Republic 1991 185.20 3.80
DEU Germany 1991 183.20 4.60
DJI Djibouti 2004 10.30 1.50
DNK Denmark 1991 159.40 4.10
DOM Dominican Republic 1991 26.20 1.10
DZA Algeria 1991 40.10 7.00
ECU Ecuador 1991 29.70 2.20
EGY Egypt, Arab Rep. 1991 26.10 6.60
ERI Eritrea 1992 14.80 0.80
ESP Spain 1991 103.40 4.90
EST Estonia 1991 247.60 8.70
ETH Ethiopia 1991 23.00 0.30
FIN Finland 1991 243.50 4.00
FJI Fiji 2004 37.10 5.30
FRA France 1991 172.30 6.90
GAB Gabon 1991 55.30 4.40
GBR United Kingdom 1991 158.30 9.80
GEO Georgia 1991 90.10 4.80
GHA Ghana 1991 18.30 1.10
GMB Gambia, The 2004 6.30 0.50
GNB Guinea-Bissau 2004 5.70 0.60
GNQ Equatorial Guinea 2004 47.10 1.70
GRC Greece 1991 90.80 4.40
GTM Guatemala 1991 23.10 1.80
GUY Guyana 2004 29.70 3.00
HKG Hong Kong SAR, China 1991 68.10 9.90
HND Honduras 1991 22.80 2.30
HRV Croatia 1991 76.00 4.20
HTI Haiti 1991 12.10 0.30
HUN Hungary 1991 113.70 4.60
IDN Indonesia 1991 26.50 2.10
IND India 1991 18.10 2.50
IRL Ireland 1991 121.50 4.90
IRN Iran, Islamic Rep. 1991 59.10 2.50
IRQ Iraq 1991 40.30 1.00
ISL Iceland 1991 340.30 8.90
ISR Israel 1991 100.40 6.40
ITA Italy 1991 113.80 3.20
JAM Jamaica 1991 50.90 4.90
JOR Jordan 1991 40.80 5.80
JPN Japan 1991 152.70 4.10
KAZ Kazakhstan 1991 193.80 3.80
KEN Kenya 1991 22.00 1.20
KGZ Kyrgyz Republic 1991 66.70 3.20
KHM Cambodia 1995 14.20 0.50
KOR Korea, Rep. 1991 99.60 3.00
KWT Kuwait 1991 58.40 6.30
LBN Lebanon 1991 39.80 11.00
LBY Libya 1991 107.40 3.20
LCA St. Lucia 2004 34.00 7.50
LKA Sri Lanka 1991 16.40 2.50
LTU Lithuania 1991 195.70 9.60
LUX Luxembourg 1991 394.70 7.90
LVA Latvia 1991 119.90 7.70
MAR Morocco 1991 16.30 0.70
MDA Moldova 1991 96.30 3.10
MDV Maldives 2004 36.80 6.50
MEX Mexico 1991 65.50 3.70
MKD North Macedonia 1991 54.00 5.30
MLT Malta 1991 80.40 7.00
MMR Myanmar 1991 13.70 0.20
MNE Montenegro 2005 76.20 5.40
MNG Mongolia 1991 75.10 4.40
MOZ Mozambique 1991 21.20 0.10
MUS Mauritius 1991 29.60 2.80
MYS Malaysia 1991 63.90 6.30
NAM Namibia 1991 22.90 2.00
NER Niger 2000 8.50 0.40
NGA Nigeria 1991 32.90 1.00
NIC Nicaragua 1991 24.20 2.10
NLD Netherlands 1991 195.80 7.70
NOR Norway 1991 216.80 14.10
NPL Nepal 1991 16.10 0.10
NZL New Zealand 1991 160.60 12.80
OMN Oman 1991 132.20 4.90
PAK Pakistan 1991 19.70 1.70
PAN Panama 1991 29.90 5.20
PER Peru 1991 21.00 0.70
PHL Philippines 1991 22.00 7.60
POL Poland 1991 113.60 5.90
PRK Korea, Dem. People’s Rep. 1991 67.50 0.70
PRT Portugal 1991 74.40 12.00
PRY Paraguay 1991 33.80 2.80
QAT Qatar 1991 623.30 2.50
ROU Romania 1991 96.50 2.60
RUS Russian Federation 1991 248.50 4.10
SAU Saudi Arabia 1991 170.70 3.30
SDN Sudan 1991 19.80 1.50
SEN Senegal 1991 12.10 1.30
SGP Singapore 1991 177.50 11.10
SLB Solomon Islands 2004 8.40 1.40
SLV El Salvador 1991 24.40 2.10
SRB Serbia 1991 95.20 3.90
SSD South Sudan 2012 5.50 2.00
STP Sao Tome and Principe 2004 13.50 0.60
SUR Suriname 2000 59.00 7.40
SVK Slovak Republic 1991 154.10 4.20
SVN Slovenia 1991 119.40 4.20
SWE Sweden 1991 239.60 4.90
SWZ Eswatini 2004 18.60 1.90
SYR Syrian Arab Republic 1991 40.30 1.60
TGO Togo 1991 17.00 0.70
THA Thailand 1991 36.40 10.60
TJK Tajikistan 1991 42.40 2.70
TKM Turkmenistan 1991 171.00 2.90
TLS Timor-Leste 2004 5.50 2.30
TON Tonga 2004 26.80 2.70
TTO Trinidad and Tobago 1991 205.60 6.00
TUN Tunisia 1991 27.40 4.90
TUR Turkey 1991 42.70 6.70
TZA Tanzania 1991 18.90 2.20
UKR Ukraine 1991 206.20 6.30
URY Uruguay 1991 35.70 3.60
USA United States 1991 322.60 8.90
UZB Uzbekistan 1991 99.10 1.50
VCT St. Vincent and the Grenadines 2004 28.50 6.60
VEN Venezuela, RB 1991 88.20 3.80
VNM Vietnam 1991 13.90 0.20
VUT Vanuatu 2004 9.20 2.10
WSM Samoa 2004 16.20 2.20
YEM Yemen, Rep. 1991 13.20 1.30
ZAF South Africa 1991 106.50 5.00
ZMB Zambia 1991 31.50 0.70
ZWE Zimbabwe 1991 42.60 1.40

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