Page Not Found
Page not found. Your pixels are in another canvas.
Sitemap
A list of all the posts and pages found on the site. For you robots out there is an XML version available for digesting as well.
Pages
About me
About me
Page not in menu
This is a page not in th emain menu
Posts
portfolio
publications
research
Illiquid Equity, Labor Mobility, and Talent Allocation
Using stock market shocks to randomize the completion of a firm’s liquidity event, I provide evidence that illiquid equity constrains labor mobility and talent allocation. I find that illiquidity reduces the mobility of employees with vested equity, while employees with unvested equity remain unaffected. The lock-in effect of illiquidity for vested employees is distinct from the well-known retention effect of unvested equity. I show that, by reducing labor mobility, illiquidity interferes with the assortative re-matching of talent in the economy. Recent trends of innovative startups staying private for longer can impose an externality on the broader economy by trapping employees in sub-optimal employer matches.
Great Recession Babies: How Are Startups Shaped by Macro Conditions at Birth?
We combine novel micro data with quasi-random timing of patent decisions over the business cycle to estimate the effects of the Great Recession on innovative startups. After purging ubiquitous selection biases and sorting effects, we find that recession startups experience better long-term outcomes in terms of employment and sales growth (both driven by lower mortality) and future inventiveness. While funding conditions cannot explain differences in outcomes, a labor market channel can: recession startups are better able to retain their founding inventors and build productive R&D teams around them.
[Wall Street Journal]
Going Public and the Internal Organization of the Firm (R&R)
with B. Lochner, S. Obernberger, and M. Sevilir
This paper examines how Initial Public Offerings (IPOs) affect firms’ internal organization. We find that IPO firms transform into more hierarchical and standardized organizations, characterized by additional layers, more managers, smaller control spans, and larger administrative functions. These changes occur mostly in preparation for the IPO, are specific to equity financing through an IPO, and cannot be explained by growth. IPO firms with higher human capital risk and stricter listing requirements display larger hierarchical changes. Our results highlight that firms need to reduce dependence on key individuals’ human capital and to manage increased operational complexity when transitioning to public markets.