Whom do high-growth firms hire?

Whom do high - growth firms hire ?

Why firms refuse to hire underbidders

A prominent theory of wage rigidity claims that a social norm against underbidding may prevent wages from falling to market clearing levels. This social norm may therefore cause downwardly rigid wages and involuntary unemployment. Recently performed questionnaire studies have thrown doubt on the conjecture that there is a social norm against underbidding. In this paper we experimentally show th...

When Do Firms Hire Lobbyists? The Organization of Lobbying at the Federal Communications Commission

This paper examines the explanatory power of transaction cost economics to explain vertical integration decisions for lobbying by firms. We examine 150 lobbying contacts at the Federal Communications Commission (FCC) on the issue of payphone compensation for dial-around calls. When firms lobby on topics that are highly firm-specific and prone to sensitive-information leakage, they are more like...

On the Firms’ Decision to Hire Academic Scientists

We analyse firms’ incentives to invest in scientific research as we characterize the optimal contracting of scientists intrinsically motivated to produce basic science. In our setting, firms face a large pool of heterogeneous scientists, with different degrees of scientific ability, and each scientist has reservation utility that is non-decreasing with their ability. Once hired scientists can s...

Competencies and Institutions Fostering High - growth Firms *

High-growth firms (HGFs) are critical for net job creation and economic growth. We analyze HGFs using the theory of competence blocs, linking firm growth to property rights and the interaction of complementary expertise. Specifically, we discuss how the institutional framework affects the prevalence and performance of HGFs. Firm growth is viewed as resulting from the perpetual discovery and use...