Work in progress
Exploiting Growth Opportunities: The Role of Internal Labor Markets (with G. Cestone, F. Kramarz and G. Pica)
CEPR Discussion Paper No. 11336
ABSTRACT: We explore how business groups use internal labor markets (ILMs) in response to changing economic conditions. We show that following the exit of a large industry competitor, group-affiliated firms expand and gain market share relying on their ILM to ensure swift hiring, especially of technical managers and skilled blue collar workers. The ability to take advantage of this shock to growth opportunities is greater in firms with closer access to their affiliates' human capital, as geographical proximity facilitates employee relocations across units. Overall, the value of the ILM as a mechanism to respond to industry shocks is largest in groups that combine industry diversification with geographical concentration: an ILM shutdown would shave almost 1 percent of these groups' profits in the year after the shock.
REvisED AND RESUBMITTED TO THE rESTUD (second round). .
SHELVING OR DEVELOPING? ACQUISITION OF POTENTIAL COMPETITORS. (with M. Motta and E. Tarantino), CEPR Discussion Paper No. 15113, 2020. New version available soon!
Work in Progress
Export shocks and input quality adjustments. Which margin do firms use most? (with R. Crinò and G. Pica), mimeo, 2018.
Bypassing labor market frictions in bad times: The role of internal labor markets. (with G. Cestone, F. Kramarz and G. Pica), mimeo, 2021.