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on Business Economics |
| By: | Ohnishi, Kazuhiro |
| Abstract: | An existing study examines an international mixed duopoly involving a state-owned public firm and a foreign private firm, focusing on their timing choices for quantities and showing that the state-owned public firm should act as the leader. This result differs from that for an endogenous-timing mixed duopoly model where a state-owned public firm coexists with a domestic private firm. We investigate the endogenous order of moves in a mixed duopoly model where a state-owned public firm competes with a private firm that is partially foreign-owned. Specifically, we explore the desirable role of the state-owned public firm, either as a leader or a follower, and present the equilibrium outcome of the model. Our findings reveal that the equilibrium differs depending on whether the foreign ownership ratio of the private firm is low or high. |
| Keywords: | Endogenous timing; Mixed oligopoly; Partial foreign ownership; Stackelberg |
| JEL: | C72 D21 F23 L13 L32 |
| Date: | 2025–05–02 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:124662 |
| By: | Hohendanner, Christian (Institute for Employment Research (IAB), Nuremberg, Germany); Leber, Ute (Institute for Employment Research (IAB), Nuremberg, Germany); Oberfichtner, Michael (Institute for Employment Research (IAB), Nuremberg, Germany) |
| Abstract: | "Based on data from the IAB establishment panel, the study examines the role of personnel problems from the establishments‘ perspective. We find that establishments mainly expect difficulties in recruiting skilled workers, but that the importance of specific problems differs markedly by firm size, sector, and employment structure." (Author's abstract, IAB-Doku) ((en)) |
| Keywords: | IAB-Open-Access-Publikation ; IAB-Betriebspanel |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:iab:iabkbe:202507 |
| By: | Marchal, Léa; Ourens, Guzmán; Sabbadini, Giulia |
| Abstract: | We show that high-skilled immigrants earn higher wages than comparable natives in exporting firms, while low-skilled immigrants do not. Using matched employer-employee and customs data from Portugal, we document a reversal of the migrant-native wage gap among high-skilled workers in exporting firms. We develop a model with heterogeneous firms and directed search, in which high-skilled immigrants lower export costs through destination-specific knowledge. The model yields an information premium that explains the wage gap reversal. We provide evidence consistent with this mechanism using information on the origin country of the workers and the destination country of the firm's exports. Our results identify a novel channel through which trade reduces wage inequality conditional on the skill level and origin country of the employees, and provide new micro-level evidence on the role of workers in shaping firm-level internationalisation. |
| Keywords: | Export, Firm, Immigrant, Wage |
| JEL: | F14 F22 F16 J15 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:dicedp:316450 |
| By: | Rebecca Diamond; Juan Carlos Suárez Serrato |
| Abstract: | This chapter examines the role of spatial sorting in shaping economic inequality in the United States. We first document the evolution of firm and worker sorting by skill level between 1980 and 2017. We highlight a shift since 2000, where both high-education workers and firms increasingly sort away from high-wage, high-rent areas. Throughout the entire time period, high-education workers continue to sort to high amenity areas. We then develop a spatial equilibrium model that incorporates idiosyncratic worker and firm sorting and discuss estimation techniques to identify model parameters. We review recent empirical advancements in spatial sorting, including firm and worker location choices and their interactions with housing policy. We conclude by outlining the model’s limitations and proposing directions for future research. |
| JEL: | J2 R1 R2 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33609 |
| By: | Sheila Jiang; Alessandro Rebucci; Gang Zhang |
| Abstract: | We develop and estimate a new model of endogenous growth in bank efficiency and firm productivity in which banks adopt technology embedded in capital goods produced by entrepreneurs, and agents choose whether to become workers or capital-good-producing entrepreneurs. In this framework, bank efficiency influences firm productivity by affecting agents' occupational choices, while firm productivity affects bank efficiency through the relative price of capital goods. We find that increasing technology adoption in the banking system to the level in the top half of the distribution in the data accelerates the economy's long-term growth from 2% to 2.17%. We also find that empirical evidence based on U.S. bank, metropolitan, and state-level data is consistent with the critical mechanisms of our model. |
| JEL: | G21 O3 O4 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33551 |
| By: | Fuhito Kojima; Bobak Pakzad-Hurson |
| Abstract: | We study a variation of the price competition model a la Bertrand, in which firms must offer menus of contracts that obey monotonicity constraints, e.g., wages that rise with worker productivity to comport with equal pay legislation. While such constraints limit firms' ability to undercut their competitors, we show that Bertrand's classic result still holds: competition drives firm profits to zero and leads to efficient allocations without rationing. Our findings suggest that Bertrand's logic extends to a broader variety of markets, including labor and product markets that are subject to real-world constraints on pricing across workers and products. |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2504.16842 |
| By: | Kristina McElheran; Mu-Jeung Yang; Zachary Kroff; Erik Brynjolfsson |
| Abstract: | We examine the prevalence and productivity dynamics of artificial intelligence (AI) in American manufacturing. Working with the Census Bureau to collect detailed large-scale data for 2017 and 2021, we focus on AI-related technologies with industrial applications. We find causal evidence of J-curve-shaped returns, where short-term performance losses precede longer-term gains. Consistent with costly adjustment taking place within core production processes, industrial AI use increases work-in-progress inventory, investment in industrial robots, and labor shedding, while harming productivity and profitability in the short run. These losses are unevenly distributed, concentrating among older businesses while being mitigated by growth-oriented business strategies and within-firm spillovers. Dynamics, however, matter: earlier (pre-2017) adopters exhibit stronger growth over time, conditional on survival. Notably, among older establishments, abandonment of structured production-management practices accounts for roughly one-third of these losses, revealing a specific channel through which intangible factors shape AI’s impact. Taken together, these results provide novel evidence on the microfoundations of technology J-curves, identifying mechanisms and illuminating how and why they differ across firm types. These findings extend our understanding of modern General Purpose Technologies, explaining why their economic impact—exemplified here by AI—may initially disappoint, particularly in contexts dominated by older, established firms. |
| Keywords: | Artificial Intelligence, General Purpose Technology, Manufacturing, Organizational Change, Productivity, Management Practices |
| JEL: | D24 O33 M11 L60 |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:cen:wpaper:25-27 |