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Analyzing a list of all Small Business Administration (SBA) loans in 1991 to 2009 linked with annual information on all U.S. employers from 1976 to 2012, we apply detailed matching and regression methods to estimate the variation in SBA loan effects on job creation and firm survival across firm...
Persistent link: https://www.econbiz.de/10013012022
The introduction of firm size into labor search models raises the question how wages are set when average and marginal product differ. We develop and analyze an alternative to the existing bargaining framework: Firms compete for labor by publicly posting long-term contracts. In such a...
Persistent link: https://www.econbiz.de/10013038304
According to Gibrat's Law of Proportionate Effect, the growth rate of a given firm is independent of its size at the beginning of the period examined. While earlier studies tended to confirm the Law, more recent research generally rejects it. This paper reconciles these two streams of...
Persistent link: https://www.econbiz.de/10013317119
and two-thirds of the additional hiring occurs within two months. The response of hiring from employment is twice as large … as the response of hiring from non-employment. Firms that are smaller, low-wage and fast-growing are associated with … employment, consistent with replacement hiring and the presence of vacancy chains. Growth in revenue and value added strongly …
Persistent link: https://www.econbiz.de/10014262807
The vast majority of firms in developing economies are micro and small enterprises owned by families whose members also provide the labour to the units. Often, they fail to grow in size even with the relaxation of credit constraints. In this paper, we show that frictions in the labour market...
Persistent link: https://www.econbiz.de/10013104968
.S. employers to estimate the effects of financial access on employment growth. Our methods combine regressions with matching on … firm age, size, industry, year, and employment history, and with instrumental variables capturing ease of access to SBA … constraints impede small business growth prior to loan receipt. We also investigate the variation in estimated employment effects …
Persistent link: https://www.econbiz.de/10013016226
We show how size-contingent laws can be used to identify the equilibrium and welfare effects of labor regulation. Our framework incorporates such regulations into the Lucas (1978) model and applies this to France where many labor laws start to bind on firms with exactly 50 or more employees....
Persistent link: https://www.econbiz.de/10013085471
and employment in real-time. Yet questions remain about the representativeness of these datasets and how to distinguish … real-time estimates of small business dynamics and employment during the pandemic are remarkably representative and closely … and openings from sample churn is critical for these results. We also find that while employment by small businesses …
Persistent link: https://www.econbiz.de/10014077681
In the large literature on firm performance, economists have given little attention to entrepreneurs. We use deaths of more than 500 entrepreneurs as a source of exogenous variation, and ask whether this variation can explain shifts in firm performance. Using longitudinal data, we find large and...
Persistent link: https://www.econbiz.de/10013087867
The recent fall of labor's share of GDP in numerous countries is well-documented, but its causes are poorly understood. We sketch a "superstar firm" model where industries are increasingly characterized by "winner take most" competition, leading a small number of highly profitable (and low labor...
Persistent link: https://www.econbiz.de/10012963787