Are Executives in Short Supply? Evidence from Death Events

• 成果类型: Article
• 署名作者: Sauvagnat, Julien; Schivardi, Fabiano
• 署名单位: Bocconi University; Luiss Guido Carli University
• 刊物名称: REVIEW OF ECONOMIC STUDIES
• ISSN/ISSBN: 0034-6527
• DOI: 10.1093/restud/rdad027
• 发表日期: 2024
• 页码: 519-559
• 关键词: management-practices; worker flows; job search; FIRMS; PRODUCTIVITY; succession; insurance; dismissal; migration; selection

摘要

Using exhaustive administrative data on Italian social security records, we construct measures of local labour market thickness for executives that vary by industry and location. We show that firm performance is strongly and persistently affected by executive death, but only in thin local labour markets. The new executives hired after death events in thin local labour markets have lower education levels and are more likely to be replaced. These predictions are consistent with a simple model of executive search in which market thickness determines the arrival rate of applications for executive positions.