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on Business Economics |
| By: | Cortes, Guido Matias; Dabed, Diego; Oliveira, Ana; Salomons, Anna |
| Abstract: | We consider how firms' organization of production relates to workers' wages. Using matched employer-employee data from Portugal, we document that firms differ starkly in their occupational employment concentration, even within detailed industries, with some firms employing workers across a broad range of occupations and others being much more specialized. These differences are robustly predictive of wages: a worker employed in a specialized, i.e. "fissured" firm, earns less than that same worker employed in a less specialized firm. This wage penalty for working in a fissured firm is observed across occupations of all skill levels. Firm specialization helps account for the role of firms in inequality, as specialization is strongly negatively related to estimated AKM firm fixed effects. Around two-thirds of the wage penalty from fissuring is explained by differences in firm productivity. Fissured firms also engage in lower rates of rent-sharing conditional on productivity, accounting for around one-quarter of the difference in wage premia between high- and low-specialization firms. Finally, we show that being employed in a specialized firm is also associated with worse longer-term career outcomes for workers. |
| Keywords: | Occupational Segregation, Between-Firm Wage Inequality, Firm Productivity, Rent-Sharing |
| JEL: | J24 J31 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:clefwp:307595 |
| By: | Swati Singla (Department of Economics, Delhi School of Economic); Vishruti Gupta (Department of Economics, Delhi School of Economic) |
| Abstract: | We examine duopoly competition between firms with asymmetric quality, wherein firms compete sequentially in quality and price. We find that the partial shareholding of the high-quality firm in revenue (or profit) of the low-quality firm softens the competition. The market share of the high-quality firm decreases as the percentage of the share in revenue (or profit) increases. Further, we find that the improvement in quality by high-quality firm is lesser than by low-quality firms. The price charged by the high-quality firm is higher than that of the low-quality firm as the high-quality firm continues to have the quality advantage. Comparing the two scenarios, revenue sharing is more desirable than profit sharing for firms, giving higher total profits.Consumers and social planner prefer profit sharing between the firms as it leads to a higher surplus. |
| Keywords: | Revenue share, Profit share, Vertical differentiation, Hoteling line. |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:cde:cdewps:353 |
| By: | Delis, Manthos; Iosifidi, Maria; Pnevmatikos, Lampros; Tsiritakis, Emmanuel |
| Abstract: | Credit negotiations can have real economic implications, especially for small firms that heavily rely on bank credit. We hypothesize and empirically establish through textual analysis that three characteristics reflecting credit negotiations are the time interval from loan application to approval or rejection, the probability of applying to another bank, and the probability of reapplying soon after a rejection. We show that poor and female entrepreneurs negotiate less vigorously, and identify several channels backing these effects, most notably education of loan applicants and firm R&D expenses. We also show how the identified effects influence loan approval and firm performance. |
| Keywords: | Credit negotiations; Small firms; Loan applications; Firm performance |
| JEL: | G0 G02 G2 G21 G30 |
| Date: | 2023–09–23 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:123003 |
| By: | Fabling Richard (Motu Economic and Public Policy Research); David Maré (Motu Economic and Public Policy Research) |
| Abstract: | This study examines whether working in a M?ori-led firm contributes to the earnings of M?ori employees. It uses administrative data for 2005-2020 to identify M?ori-led firms, based on the ethnicity and descent of working proprietors, and using an improved method of measuring descent. Almost 8% of M?ori employees work in M?ori-led firms. Controlling for firm and worker characteristics, we find that M?ori-led firms have slightly lower than average multi-factor productivity and wage levels. The wage effects for M?ori of working in a M?ori-led firm are small but there is some evidence to suggest that moving between M?ori-led firms contributes to wage growth for w?hine M?ori, and that in M?ori-led firms there is stronger pass-through of firm performance to earnings levels for t?ne M?ori. |
| Keywords: | earnings; productivity; M?ori; ethnicity |
| JEL: | J30 J15 J71 J42 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:mtu:wpaper:24_05 |
| By: | Fabling Richard (Motu Economic and Public Policy Research) |
| Abstract: | Productivity data is missing from the Longitudinal Business Database (LBD) for over a third of firm-year observations in “measured sector” industries, equating to a fifth of total labour in those industries. We develop a method to fill these data gaps using an additional (third) data source – firm-level annualised goods and services tax (GST) returns. Coupled with additional modelling using full-coverage employment information, the resulting “complete” productivity dataset provides additional avenues for researchers to test the robustness of their results to the inclusion of firm types previously underrepresented in the productivity data – particularly new and owner-operated firms. |
| Keywords: | Longitudinal Business Database; administrative data; productivity |
| JEL: | D20 D24 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:mtu:wpaper:24_06 |
| By: | Mammadaliyev, Farid; Gilsing, Victor; Knoben, J. (Tilburg University, School of Economics and Management) |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:tiu:tiutis:56c854b7-ed86-4830-843e-c9d489162062 |