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on Business Economics |
| By: | Alexander S. Kritikos; Mika Maliranta; Veera Nippala; Satu Nurmi |
| Abstract: | We examine how the gender of business-owners is related to the wages paid to female relative to male employees working in their firms. Using Finnish register data and employing firm fixed effects, we find that the gender pay gap is – starting from a gender pay gap of 11 to 12 percent - two to three percentage-points lower for hourly wages in female-owned firms than in maleowned firms. Results are robust to how the wage is measured, as well as to various further robustness checks. More importantly, we find substantial differences between industries. While, for instance, in the manufacturing sector, the gender of the owner plays no role for the gender pay gap, in several service sector industries, like ICT or business services, no or a negligible gender pay gap can be found, but only when firms are led by female business owners. Businesses in male ownership maintain a gender pay gap of around 10 percent also in the latter industries. With increasing firm size, the influence of the gender of the owner, however, fades. In large firms, it seems that others – firm managers – determine wages and no differences in the pay gap are observed between male- and female-owned firms. |
| Keywords: | Entrepreneurship, Gender Pay Gap, Discrimination, Linked employeremployee data |
| JEL: | J16 J24 J31 J71 L26 M13 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp2079&r= |
| By: | Tasso Adamopoulos; Diego Restuccia |
| Abstract: | We present an introduction to the Symposium on Misallocation and Structural Transformation. |
| Keywords: | Productivity, misallocation, structural transformation, employment, human capital, business dynamism, firm size, migration. |
| JEL: | O4 |
| Date: | 2024–05–31 |
| URL: | https://d.repec.org/n?u=RePEc:tor:tecipa:tecipa-777&r= |
| By: | Kuosmanen, Natalia; Pajarinen, Mika; Heshmati, Almas |
| Abstract: | Abstract The service sector is undergoing rapid changes attributed to digitalization. This study examines the relationship between digitalization and the performance of the Finnish private service firms from 2015 to 2021 using linked employer-employee data, financial data and an IT usage survey. Our descriptive and regression analyses reveal significant variability in the level and areas of digital adoption across service industries. Information and communication, and professional activities are found highly digitalized, while accommodation and food service activities, and transportation and storage lag in digitalization intensity. Additionally, we find a strong positive correlation between firms’ digitalization and revenues, particularly for firms with higher digital intensity. This correlation persisted throughout the COVID-19 pandemic. We also observe a positive correlation between digitalization and productivity in the early years, but more recent data suggest a weakening of this association, possibly due to increased digital adoption among less productive firms during the pandemic. Finally, our analysis indicates that larger firms, or those with a larger market share or international activities, tend to have higher levels of digitalization. Thus, investment in digitalization is recommended to enhance service sectors performance. |
| Keywords: | Digitalization, Firm performance, Productivity, Private service industry, Finland |
| JEL: | L25 L80 L86 O14 O33 |
| Date: | 2024–06–11 |
| URL: | https://d.repec.org/n?u=RePEc:rif:wpaper:117&r= |
| By: | Giulio Cornelli; Magdalena Erdem; Egon Zakrajsek |
| Abstract: | We investigate the relationship between the probability of a CEO forced-turnover and firm performance on several environmental dimensions. Our findings suggest that a higher risk of being terminated for the CEO is correlated with a lower environmental ranking, particularly on environmental innovation activities, and more ESG controversies for the firm. The inclusion of ESG-pay clauses in executives' compensation packages only marginally offsets such deterioration. Looking at data on Greenhouse gas (GHG) emissions, we consistently find that a rise in the probability of being terminated corresponds to an increase in scope 2 and 3 emissions ("carbon leakeage"), whereas scope 1 emissions remain unchanged. Through an instrumental variable approach, we trace the deterioration of firms' ESG controversies- and environmental innovation scores to a strategical re-orientation towards short-terminism. |
| Keywords: | corporate finance, ESG, emissions, environmental innovation, short-terminism |
| JEL: | D22 G30 G34 O31 Q55 |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:bis:biswps:1190&r= |
| By: | Charlotte Emlinger; Karine Latouche |
| Abstract: | This paper estimates the impact of the inclusion of GIs in bilateral agreements on French exports of foodstuffs. We rely on a unique dataset of firms and products concerned by Geographical Indications (GIs) in the French agri-food industry (excluding wine) for 2012-2019, merged with firm-product-destination level data from French Customs and the French National Institute of Statistics. Controlling for market and firm characteristics, we compare the exports of GI firms with those of non-GI firms before and after the signing of the 13 agreements (25 destination countries) that include a list of GIs to be protected. We show that the protection of GIs in EU RTA helps French firms to reach new markets and to sell their products at higher price, but it depends on the level of protection provided by the agreement. |
| Keywords: | Geographical Indications;Regional Trade Agreements;Trade Margins |
| JEL: | F10 F14 |
| Date: | 2024–03 |
| URL: | https://d.repec.org/n?u=RePEc:cii:cepidt:2024-05&r= |
| By: | Carlo Altomonte; Nevine El-Mallakh; Tommaso Sonno |
| Abstract: | We build a novel worldwide database merging information on patent-citations of firms paired with information on firms' affiliation to Business Groups (BGs). We exploit these data to document how BGs appropriate knowledge through standalone firm acquisition. First, we confirm that innovative standalone firms have a higher probability of becoming part of a BG. Second, we document how BGs tend to acquire firms that are on an upward trend in patents and citations. We also show that innovating activity significantly deteriorates post-acquisition, particularly for firms with high-quality, cited patents. Third, we show that such a deterioration in innovation activity is driven by acquired firms patenting within the same technological classes of the acquiring BG, while the latter does not hold for acquired firms patenting in different technologies than the BG's. We also find that acquisitions occurring in environments characterized by higher market concentration and more mature leading firms are associated with a relatively more pronounced reduction in innovation. These results generalize the defensive acquisition narrative, suggesting that BGs leverage these transactions as a strategic manoeuvre to solidify their market position in the face of potential competition. |
| Keywords: | business groups, innovation |
| Date: | 2024–04–30 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1996&r= |
| By: | Diegmann, André; Pohlan, Laura; Weber, Andrea |
| Abstract: | We study how connections to German federal parliamentarians affect firm dynamics by constructing a novel dataset to measure connections between politicians and the universe of firms. To identify the causal effect of access to political power, we exploit (i) new appointments to the company leadership team and (ii) discontinuities around the marginal seat of party election lists. Our results reveal that connections lead to reductions in firm exits, gradual increases in employment growth without improvements in productivity. The economic effects are mediated by better credit ratings while access to subsidies or procurement contracts are documented to be of lower importance. |
| Keywords: | firm performance, identification, political connections, politicians |
| JEL: | D72 L25 O43 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:iwhdps:296476&r= |
| By: | Kolev, Atanas; Randall, Timothy |
| Abstract: | Using firm-level survey data combined with firm-level financial information, we investigate the effect of a subjective, firm-specific measure of uncertainty on firm investment and employment growth in the European Union. We find that uncertainty has an economically significant negative effect on investment. Uncertainty is found to have an economically significant negative effect on employment growth, as well. Firms perceiving uncertainty as a major investment impediment experience 1 p.p. lower employment growth compared to those that do not. Using our estimates, we find that non-financial corporate investment in the European Union in 2022 would have been higher by 1 p.p. of fixed assets, while employment growth would have been by 0.7 p.p. higher had uncertainty remained at its 2021 levels. |
| JEL: | D22 D84 G31 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:eibwps:296480&r= |
| By: | Bo Cowgill; Jonathan M. V. Davis; B. Pablo Montagnes; Patryk Perkowski |
| Abstract: | A principal often needs to match agents to perform coordinated tasks, but agents can quit or slack off if they dislike their match. We study two prevalent approaches for matching within organizations: Centralized assignment by firm leaders and self-organization through market-like mechanisms. We provide a formal model of the strengths and weaknesses of both methods under different settings, incentives, and production technologies. The model highlights tradeoffs between match-specific productivity and job satisfaction. We then measure these tradeoffs with data from a large organization’s internal talent market. Firm-dictated matches are 33% more valuable than randomly assigned matches within job categories (using the firm’s preferred metric of quality). By contrast, preference-based matches (using deferred acceptance) are only 5% better than random but are ranked (on average) about 38 percentiles higher by the workforce. The self-organized match is positively assortative and helps workers grow new skills; the firm’s preferred match is negatively assortative and harvests existing expertise. |
| Keywords: | internal labor markets, assortative matching, assignment mechanisms, team formation, matching |
| JEL: | M50 D47 J40 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_11120&r= |