Skilled Labor Mobility and Firm Value: Evidence from Green Card Allocations

• 成果类型: Article
• 署名作者: Shen, Mo
• 署名单位: Auburn University System; Auburn University
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhab014
• 发表日期: 2021
• 页码: 4663
• 关键词: capital structure; INNOVATION EVIDENCE; TRADE SECRETS; INVESTMENT; AGREEMENTS

摘要

This paper studies how the labor market frictions of skilled workers affect corporate valuation. The analysis features immigrant workers' mobility constraints imposed by the U.S. green card application process and exploits exogenous variations caused by imperfections in the current immigration system. The study finds that relaxing mobility constraints negatively influences firm value. This effect is stronger for firms with higher labor adjustment costs. Reductions in investments and increases in labor costs are channels through which labor mobility adversely affects firm value. The findings suggest that monopoly rent over skilled workers is an important economic determinant of corporate valuation.