Fonseca, João Galindo da; Santarrosa, Rogerio - 2025
We test whether firms react to changes in the wages and size of their competitors. We use a unique institutional … size and wages of the firm receiving the shock. Then, we document that these firm-specific demand shocks lead to increased … wages of other (competing) firms in the same local labor market. We do not find negative effects on competitors' firm size …