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on Business Economics |
| By: | Filippo Boeri; Riccardo Crescenzi; Davide Rigo |
| Abstract: | Using administrative firm-level data covering the universe of remote workers in Italy, and leveraging exogenous pre-pandemic variation in firm-specific access to fibre broadband as an instrument, this paper investigates the impact of post-pandemic adoption of work from home (WFH) on firm productivity. We find that WFH had a large negative impact on productivity during the pandemic. However, larger firms and those with prior ICT investments mitigated these losses. In the longer term, the impact of WFH is no longer significant. Yet, we find suggestive evidence that firms employing highly qualified workers experienced productivity gains. |
| Keywords: | work from home, firms, productivity |
| JEL: | D22 J21 J24 L25 O33 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12253 |
| By: | Rafael Guntin (UNIVERSITY OF ROCHESTER); Federico Kochen (BANCO DE ESPAÑA AND CEMFI) |
| Abstract: | What are the origins of top firms? What features characterize their life cycle trajectories on the way to the top? Using longitudinal firm-level data, we document novel facts about the first twenty years of the firms that reach the top 1 percent of the size distribution. Compared to the firms in the bottom 99 percent, top firms are eight times larger at entry and grow six times more during their first two decades. In terms of inputs, they start with high capital investments, yet their capital-output ratio and labor share decline as they age. As a result, their profit share is much more backloaded towards the second decade of their life cycle. We show that a firm dynamics model with ex-ante heterogeneity, non-homothetic input costs, and forward-looking financing can explain these empirical patterns. Our quantitative results showcase the importance of accounting for top and bottom firm dynamics for the aggregate implications of financial frictions, recent macroeconomic trends, and corporate taxation. |
| Keywords: | top 1 percent, firm size distribution, firm dynamics, financial frictions |
| JEL: | E44 O47 G30 |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:bde:wpaper:2541 |
| By: | I. Etzo; L. Ciucci |
| Abstract: | This study investigates the competitiveness and efficiency of Small and Medium Enterprises (SMEs) within the Cultural and Creative Industries (CCI) in Italy, using a comprehensive firm-level dataset from 2019 to 2023. We estimate Total Factor Productivity (TFP) to analyze firm performance, addressing endogeneity concerns through panel fixed-effects models and employing a Translog production function for flexible input elasticity. Our findings reveal significant spatial heterogeneity, with central and north-western regions exhibiting higher CCI productivity than southern areas. Furthermore, we uncover disparities related to firm size, age, and specialization within Creative versus Cultural domains. The largest and oldest CCI firms show a higher TFP. The Creative industry demonstrates greater productivity than the Cultural industry. We provide evidence that manufacturing-oriented CCI tend to exhibit lower productivity compared to service-oriented CCI. The results underscore the importance of targeted policies to address regional disparities and sectorspecific challenges within the CCI ecosystem, promoting innovation and sustainable growth. |
| Keywords: | Cultural and creative industries;total factor productivity;SMEs;Italian regions |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:cns:cnscwp:202514 |
| By: | Francis M. Dillon; Sari Pekkala Kerr; William R. Kerr; Andrew J. Wang |
| Abstract: | Immigrant students who attend U.S. colleges are disproportionately employed in either large firms—especially multinationals—or small firms and self-employment. Using linked Census and longitudinal employment data, we trace the jobs taken by college students in 2000 during the 2001-20 period and evaluate four mechanisms shaping sector and firm size placement: geographic clustering, degree specialization, firm capabilities/visas, and ethnic self-employment specialization. Degree fields predict large firm and MNE placement, while ethnic specialization explains small firm sorting. Immigrant students who remain in the U.S. earn more than their native peers, suggesting the segmentation reflects productive sorting rather than blocked opportunity. |
| JEL: | F22 F23 F66 I23 J61 L26 M13 M16 |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:34440 |
| By: | Kee, Hiau Looi; Xie, Enze |
| Abstract: | Nickel is essential for producing iron and steel. Endowed with the world's largest reserve, Indonesia banned nickel exports in 2014 to promote industrialization. This paper studies the impacts of the export ban on downstream steel-using industries. A three-sector model shows that, while the export ban could raise the domestic value-added ratio (DVAR) in exports, the entry of smaller, inefficient firms led to aggregate efficiency losses downstream. Firm-level evidence confirms higher DVAR, smaller firm size, and larger entrant shares in downstream industries post the export ban. A field mission validated these results, while noting the continued heavy reliance on imported steel. |
| Date: | 2025–11–10 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:11249 |
| By: | Masayuki MORIKAWA |
| Abstract: | This study uses Japanese firm panel data to examine trends in manufacturing firms’ shift toward service-oriented businesses—referred to as “Manufacturing X.†A distinguishing feature of this study is that it analyzes not only overall non-manufacturing businesses but also narrowly defined service businesses. We find that manufacturing firms’ share of non-manufacturing sales has been steadily increasing. If the current trend continues, the share of non-manufacturing sales among these firms is projected to reach 16.5% by 2040. Both the proportion of firms engaged in and sales share of narrowly defined services such as machine repair, professional services, and business services are rising, indicating a gradual shift in manufacturers’ service businesses. Expanding narrowly defined service sales is positively associated with sales growth and profitability. |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:eti:dpaper:25103 |
| By: | Lars Hornuf; Daniel Vrankar |
| Abstract: | Those seeking to drum up public support for the space industry frequently cite its potential to generate valuable spillovers to other industries. However, existing research on spillover effects overlooks differences in business models among commercial actors and focuses only on individual projects or specific space agencies. We analyze how evolving business models influence spillovers by comparing the dynamic capabilities of traditional aerospace conglomerates to those of new space firms, using a unique dataset of 35, 696 space-related patent applications. We find that, in addition to industries directly related to space, such as aeronautics, sectors like manufacturing and communication technology in particular benefit from space activities. At the firm level, we observe that new space business models present greater spillover potential and generate more spillovers than traditional aerospace conglomerates. However, traditional conglomerates such as Airbus or Boeing induce spillovers into digital systems and clean tech, while new space firms cannot translate their digital business models into digital spillovers and occupy more peripheral positions in the innovation network of space. Additionally, based on two different innovation metrics and more than 1.6 million additional patent applications, we find no evidence that the business models of the space industry have generally led to more spillovers than other high-tech industries. |
| Keywords: | new space business models, new space economy, innovation, dynamic capabilities, spillover, patent data |
| JEL: | D62 H57 L20 L21 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12236 |
| By: | Steven F. Lehrer; Luke Rawling |
| Abstract: | Immigrant integration is a central issue in policy debates, with wage assimilation serving as a key indicator of immigrants’ economic success. Using matched employer–employee data from Canada, we study how access to higher-paying firms affects the economic assimilation of immigrants. Immigrants are disproportionately concentrated in lower-paying firms, accounting for much of the observed inequality. Nearly half of this sorting occurs across industries, and both firm- and industry-level wage gaps stagnate after eight years, suggesting that further assimilation reflects human capital accumulation rather than improved firm access. Importantly, these disparities persist after controlling for estimates of worker skill, indicating barriers to high-paying firms rather than differences in human capital. The analysis further shows that Canada’s post-2015 immigration policy reforms significantly improved immigrant outcomes: the initial wage gap narrowed by 25–35%, with roughly half of the improvement attributable to better allocation into higher-paying firms. Taken together, the findings highlight the critical role of firm sorting and its interaction with immigration policy in shaping the economic integration of immigrants. |
| JEL: | J31 J60 |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:34462 |
| By: | Quitz\'e Valenzuela-Stookey |
| Abstract: | A firm can complete the tasks needed to produce output using either machines or workers. Unlike machines, workers have private information about their preferences over tasks. I study how this information asymmetry shapes the mechanism used by the firm to allocate tasks across workers and machines. I identify important qualitative differences between the mechanisms used when information frictions are large versus small. When information frictions are small, tasks are substitutes: automating one task lowers the marginal cost of other tasks and reduces the surplus generated by workers. When frictions are large, tasks can become complements: automation can raise the marginal cost of other tasks and increase the surplus generated by workers. The results extend to a setting with multiple firms competing for workers. |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2511.02675 |
| By: | Roth, Felix; Rammer, Christian |
| Abstract: | Intangible assets have increasingly been identified as a main source of productivity gains. Since the pioneering work by Corrado, Hulten, and Sichel (2005), empirical research has largely focused on macro and industry-level studies, while firm-level studies have often been confined to a limited set of intangible assets, especially Research and Development (R&D). This paper employs a unique firm-level panel database that contains information on four types of intangible assets: R&D, software & databases (S&D), firm-specific human capital (HC), and brand value (BV). For R&D, we find much lower productivity returns than for S&D and HC. R&D even loses significance once controlling for other intangibles, except for high-tech manufacturing. In contrast to R&D, we find that S&D and HC tend to be the primary drivers of productivity gains, particularly in services. Our findings have implications for research policy, suggesting a stronger focus on supporting investment in non-R&D intangibles, including S&D and HC. |
| Keywords: | Non-R&D intangibles, Productivity, R&D, Digitalisation, Firm-specific human capital, Brand value, Firm-level panel data |
| JEL: | E22 O33 O38 D24 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:uhhhdp:20 |
| By: | Andrea Ariu; Giulia Rivolta (Università Cattolica del Sacro Cuore; Dipartimento di Economia e Finanza, Università Cattolica del Sacro Cuore) |
| Abstract: | This paper quantifies the micro- and macro-level consequences of the sudden appreciation of the Swiss franc in 2015, one of the sharpest and most persistent currency movements in recent decades. Using detailed firm-level data on French imports and exports, we show that the Swiss franc appreciation led to a rise in exports, driven mainly by the entry of new firms and new products, while imports increased only briefly due to a spike in prices among continuing firm–product pairs. These dynamics mirror a textbook J-curve adjustment and reveal the firm-level mechanisms underlying this aggregate response. On the macro side, we trace how the shock propagated through supply chains, capturing both direct and indirect exposures through input–output linkages. This network-based perspective uncovers a small but negative overall impact on French GDP, driven by the stronger hit to importers, more reliant on non-euro currencies and more central within domestic production networks, who acted as key conduits transmitting the negative side of the shock across the economy. |
| Keywords: | Exchange rate shocks, international trade, production network. |
| JEL: | F14 F31 F44 |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:ctc:serie1:def146 |
| By: | Viet Nguyen-Tien |
| Abstract: | To what extent has the rise of clean energy technologies created new vulnerabilities in global supply chains? In this paper, I study the role of a new type of 'input uncertainty' associated with critical minerals that underpin the deployment of clean energy technologies. I combine firm-level performance data for publicly listed companies worldwide with textual information from quarterly earnings conference calls to construct text-based measures of technological involvement and mineral exposure. As a first result, my methodology is validated by the strong co-occurrence of clean energy technologies and critical mineral usage across transcripts. In a second result, I model the impact of critical mineral-related input uncertainty on firm performance which shows clear impacts for lithium and copper-related risks across different regions. Finally, I produce text-based evidence on how firms are mitigating supply chain risk, distinguishing between long-term process innovation and short-run operational measures. Overall, I find that new supply chain risks related to critical minerals are limited, most likely to the early stage of development of the sector. |
| Keywords: | critical minerals, energy transition, risk, exposure, sentiment, circular economy, material substitution, Green Growth |
| Date: | 2025–11–03 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepdps:dp2133 |
| By: | Cavalcanti, T.; Mohaddes, K.; Nian, H.; Yin, H. |
| Abstract: | This paper investigates the pass-through of environmental compliance costs along supply chains. We compile a firm-level dataset linking regulated firms in pollution-intensive industries with their top five clients and suppliers. We find that clients of regulated firms invest less in R&D, employ fewer skilled R&D staff, and produce fewer innovations than clients of less regulated firms, while no comparable effects are observed for suppliers. The pass-through is stronger with larger trade volumes, higher input prices faced by clients, and in markets where regulated firms hold greater market power or clients face intense competition. Policy simulations suggest that green technology incentives for regulated firms and R&D subsidies for their clients can mitigate these adverse effects and raise social welfare by enhancing both innovation and environmental quality. |
| Keywords: | Environmental Compliance, Supply Chains, Pass-Through, R&D, Innovation |
| JEL: | O30 Q01 Q55 |
| Date: | 2025–10–18 |
| URL: | https://d.repec.org/n?u=RePEc:cam:camjip:2528 |
| By: | Tatyana Deryugina; Alminas Zaldokas; Anastassia Fedyk; Yuriy Gorodnichenko; James Hodson; Ilona Sologoub |
| Abstract: | We develop a novel, scalable method for assessing the quality of public procurement systems using standard administrative data. Our approach compares the distribution of procurement opportunities to the distribution of contract awards across firms. We first derive a simple theoretical benchmark that relates the expected distribution of contract value winning firms, measured as a Herfindahl-Hirschman index (HHI), to the distribution of auction values, measured as a respective HHI, and the number of winning firms. Significant deviations of winning firms' HHI from this benchmark indicate potential governance failures such as corruption or unchecked collusion. Our method requires no subjective input, is transparent and reproducible, and allows for meaningful comparisons across countries, industry sectors, and over time. We use procurement data from Ukraine and EU member states in 2018-2021 to assess the performance of five large sectors. Results indicate that Ukraine's procurement performance in four of the five sectors is comparable to many other European countries. However, Ukraine's construction sector consistently displays the largest excess concentration among all countries considered, consistent with anecdotal evidence of corruption in this sector. Overall, with minimal data requirements, our method offers a practical tool for cross-sector and cross-country assessment of procurement systems. |
| Keywords: | procurement, corruption, Ukraine, collusion |
| JEL: | D73 L10 H11 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12250 |
| By: | Justus Haucap; Mehmet Karacuka; Hakan Inke |
| Abstract: | Utilizing Connor’s International Cartel Database and employing difference-in-differences methodology, we find that market concentration, the number of buyers and cartel duration have significant impacts on cartel overcharges. We also find that the European Commission's 2006 guidelines on the method of setting fines for cartel infringements seems to have decreased cartel overcharges in the EU. In addition, the EU’s cartel damages directive of 2014 (2014/104/EU) appear to have increased private damage payments. Overall, we find support that these two changes in EU competition policy have a reversing impact on the otherwise increasing trend of cartel overcharges, as making the infringement more costly at least in the EU. |
| Keywords: | cartel fines, cartel damages, EU guidelines, competition law, antitrust |
| JEL: | L41 K21 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12259 |