This paper shows that firms spread the adverse impacts of local employment shocks across regions through their internal … establishment-level employment responds strongly to employment shocks in other regions in which the firm has establishments …. Consistent with theory, the elasticity of establishment-level employment with respect to shocks in other regions is increasing …

model of optimal within-firm resource allocation, we find that establishment-level employment is sensitive to shocks in … increases with the firm's financial constraint. At the aggregate regional level, we find that aggregate county-level employment …

This paper shows that firms spread the adverse impacts of local employment shocks across regions through their internal … establishment-level employment responds strongly to employment shocks in other regions in which the firm has establishments …. Consistent with theory, the elasticity of establishment-level employment with respect to shocks in other regions is increasing …