Race, Firm Size, and the School-to-Work Transition

Lisa B. Kahn and Yang Chang

AEA Papers and Proceedings, 2026, vol. 116, 400-405

Abstract: We examine race differences in labor market entry timing and quality of first jobs. Black workers are more likely to begin their careers at large firms but exhibit delayed entry. White workers increase their odds of starting at a large firm by searching for longer. Young Black workers, who exhibit no such return to search time, appear to face a trade-off between finding a job at a large firm or not at all. While large firms confer a well-known pay premium, White workers appear to benefit from greater accessibility of small firms for gaining a foothold in the labor market.

JEL-codes: D22 I26 J13 J15 J24 J31 L25 (search for similar items in EconPapers)
Date: 2026
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DOI: 10.1257/pandp.20261095

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