Local Labor Market Frictions and Platform Entrepreneurship
This paper explores the implications of mobility frictions in local labor markets on aggregate regional sorting patterns of individuals into platform entrepreneurship, an understudied type of entrepreneurial activities intermediated by a digital platform eco-system. We hypothesize that in local labor markets where mobility frictions are high, an excess supply of high-quality labor cannot be matched to jobs in the local wage sector. They turn to platform entrepreneurship and earn a significant premium in average revenues compared to other locations. Consistent with individuals sorting by ability in response to mobility frictions, more frequent job turnover in a location leads to a significantly stronger association between local wage and platform entrepreneurship revenues. Digital platforms provide especially significant gains to individuals facing mobility frictions in their local labor markets. Our findings imply that firms may gain from hiring remote workers in previously overlooked geographical areas with an excess supply of high-quality human capital
Year of publication: |
2023
|
---|---|
Authors: | Cao, Sam (Ruiqing) |
Publisher: |
[S.l.] : SSRN |
Subject: | Regionaler Arbeitsmarkt | Regional labour market | Unternehmensgründung | Business start-up | Entrepreneurship | Entrepreneurship approach | Unvollkommener Markt | Incomplete market | Theorie | Theory |
Saved in:
freely available
Extent: | 1 Online-Ressource (44 p) |
---|---|
Type of publication: | Book / Working Paper |
Language: | English |
Notes: | Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments January 23, 2023 erstellt |
Other identifiers: | 10.2139/ssrn.4335360 [DOI] |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10014261916
Saved in favorites
Similar items by subject
-
Wealth inequality, uninsurable entrepreneurial risk and firms markup
Brien, Samuel, (2021)
-
Constrained inefficiency of competitive entrepreneurship
Ando, Sakai, (2020)
-
Market frictions in entrepreneurial innovation : theory and evidence
Cipollone, Angela, (2019)
- More ...
Similar items by person