In 1993 Audi opened a new plant in Hungary. This paper examines the long-term effects of this large foreign direct investment on local firms operating in supplier industries. I use firmlevel panel data with long time series. Using the method of triple difference-in-differences I compare outcomes...

I estimate the impact of foreign-owned large plant closures on local firms. I identify 41 such events in Hungary and assign comparable control cities with foreign-owned large plants operating in the same industry and not closing. I use a firm-level panel database of Hungarian firms between 1992...

A great deal of multinationals receive a bundle of hidden or cash subsidizes upon investing in a foreign country. Policymakers often argue that a subsidy today will help locate friends of the investor later on. Using extensive data on FDI investments, we analyze such patterns. In particular, we...

The potential restructuring of global value chains (GVCs) is a widely discussed question in current debates. At the same time, a proper way of capturing these value chains is challenging. This paper focuses on the automotive industry, using detailed data on firm-to-firm transactions in Hungary,...

This paper investigates the contribution of high-growth firms (HGFs) to aggregate productivity growth. Four stylized facts emerge. First, HGFs mainly contribute to productivity growth during their high-growth phase but not afterwards. Second, their contribution varies substantially across...

We study fertility responses to employment shocks. Using unique Hungarian administrative data that allow linking firm-level mass layoff and closure events to individual-level records on births and abortions, we show that the main response happens in anticipation of the shock. Responses differ by...

How do temporary spells of absence from work affect individuals' labor trajectory? To answer this question, we augment a 'wage ladder' model, in which individuals receive alternative take-it-or-leave-it wage offers from firms and potentially suffer accidents which may push them into temporary...

This paper studies the effects of employment shocks on births and induced abortions. We are the first to show that abortions play a role in fertility responses to job displacement. Furthermore, we document precautionary fertility behavior: the anticipatory response of women to expected labor...

How do temporary spells of absence from work affect individuals' labor trajectory? To answer this question, we augment a 'wage ladder' model, in which individuals receive alternative takeit-or-leave-it wage offers from firms and potentially suffer accidents which may push them into temporary...

How do temporary spells of absence from work affect individuals' labor trajectory? To answer this question, we augment a 'wage ladder' model, in which individuals receive alternative take-it-or-leave-it wage offers from firms and potentially suffer accidents which may push them into temporary...