Veranstaltung
10
JUN 2025

14:15 - 15:45
IWH Research Seminar

Workers’ Job Prospects and Young Firm Dynamics

This paper investigates how worker beliefs and job prospects impact the wages and growth of young firms, as well as the aggregate economy.

Who
Seula Kim  (The Pennsylvania State University)
Where
IWH, conference room and via Zoom
Seula Kim

Personal details

Seula Kim is an Assistant Professor of Economics at the Pennsylvania State University. ​​​Her research interests are Macroeconomics, Firm Dynamics, Labor, Innovation.


To join the lecture via Zoom, please register here.

This paper investigates how worker beliefs and job prospects impact the wages and growth of young firms, as well as the aggregate economy. Building a heterogeneous-firm directed search model where workers gradually learn about firm types, I find that learning generates endogenous wage differentials for young firms. High-performing young firms must pay higher wages than equally high-performing old firms, while low-performing young firms offer lower wages than equally low-performing old firms. Reduced uncertainty or labor market frictions lower the wage differentials, thereby enhancing young firm dynamics and aggregate productivity. The results are consistent with U.S. administrative employee-employer matched data. Read more …

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