Recently collected data show that, within any manufacturing industry, vertically integrated firms tend to have larger, higher productivity plants, account for the bulk of sales, and also sell externally most of the inputs they produce. In a weak contracting environment characteristic of...

Most new firms are founded by former employees of existing firms – spinouts. This paper documents how employer size shapes the entry and post-entry dynamics of spinouts. Using micro-data from Mexico, I show that employees from small firms are more likely to form spinouts than employees of...