Conference Agenda

Tips to navigate the program:

  • Overview of all papers on a specific day: click on the day (e.g. Date: Thursday, 24/Aug/2019). To download papers, you will need to access the session by clicking on its title first.
  • Program index: click on the Authors tab below.
  • Location name: to display all sessions taking place in that room
  • Search box: to search for authors, papers and sessions.

Please notes that changes in the program might occur.

If your name is not displayed in the program, please register in our conference system.

If your paper information is not up to date, please send us an email at

Registration to the conference closes on August 1st, 2019:

Session Overview
CFGE-14: Labor and Finance
Friday, 23/Aug/2019:
8:30 - 10:00

Session Chair: Ashwini Agrawal, LSE
Location: D -110

Show help for 'Increase or decrease the abstract text size'

Fewer and Less Skilled? Human Capital, Competition, and Entrepreneurial Success in Manufacturing

Meghana Ayyagari1, Vojislav Maksimovic2

1George Washington University, United States of America; 2University of Maryland, United States of America

Discussant: Jesus Andres Gorrin Leon (Warwick Business School)

We use micro data on skill levels of establishments to examine the human capital of US manufacturing entrants and incumbent plants over the period 2005-2013. We find a large drop in the cognitive skill levels of the entrant work force over this period. This has serious long-term implications since initial cognitive skills at the establishment level predict future skills and growth rates. While there is a differential decline in entrant skills in industries exposed to Chinese imports, we also find that incumbents upgrade skill levels in exposed industries. High skilled incumbents grow faster than low skilled establishments in exposed industries. The evidence for entrants is weaker, suggesting that they are entering in niches appropriate to their skill sets. The economic effect of import competition on the differential in skills between entrants and incumbents is economically significant explaining between 17%-60% of the skill differential in 2011. Overall, we find that entrepreneurial firms and incumbents are acquiring different skill sets, leaving entrants more exposed to the risk of automation or offshoring.

efa2019-CFGE-14-1508-Fewer and Less Skilled Human Capital, Competition, and Entrepreneurial Success.pdf

Local Taxes and the Demand for Skilled Labor: Evidence From Job Postings

Murillo Campello1, Janet Gao2, Qiping Xu3

1Cornell University; 2Indiana University, United States of America; 3University of Notre Dame

Discussant: Phuong-Anh Nguyen (Schulich School of Business at York University)

We show how state personal income taxes influence firms' decisions to hire skilled workers. Using a novel, comprehensive dataset containing US firms' online job postings, we document a measurable, negative effect of personal taxes on the level of education and skill required by firms. This effect is mitigated by firms' financial strength and in states that account for a large fraction of firms' sales, but it is aggravated where firms do not rely on local input. Our findings point to a ``brain-drain" of states with high personal income taxes. This is one of the first pieces of evidence showing that state taxes affect the demand for human capital and the skills of workers in the local labor market.

efa2019-CFGE-14-1378-Local Taxes and the Demand for Skilled Labor.pdf

Do Minimum Wage Increases Cause Financial Stress to Small Businesses? Evidence from 15 Million Establishments

Manpreet Singh, Sudheer Chava, Alex Oettl

Georgia Tech, United States of America

Discussant: Roberto Pinto (Lancaster University Management School)

Do increases in federal minimum wage impact financial health of small businesses? Using inter-temporal variation in whether a state's minimum wage is bound by the federal minimum wage and credit-score data for approximately 15.2 million establishments for the period 1989-2013, we find that increases in federal minimum wage worsen the financial health of small businesses in the affected states. Small, young, labor-intensive, minimum-wage sensitive establishment located in bounded states and businesses located in competitive and low-income areas experience higher financial stress. Increases in minimum wage also lead to lower bank loans, a higher risk of loan default and higher exit rate for affected small businesses. We use various matching methods and fixed effects to control of unobservable differences in treatment and control groups. The evidence suggests that some small businesses are unable or unwilling to pass-through costs to customers immediately and consequently experience financial stress. Our results document the costs to the one-size-fits-all nationwide minimum wage and highlight how the increases in minimum wages can have an adverse effect on the financial health of small businesses.

efa2019-CFGE-14-1202-Do Minimum Wage Increases Cause Financial Stress to Small Businesses Evidence.pdf

Contact and Legal Notice · Contact Address:
Conference: EFA 2019
Conference Software - ConfTool Pro 2.6.129+TC
© 2001 - 2019 by Dr. H. Weinreich, Hamburg, Germany