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The internal labor markets of business groups

Federico Huneeus (), Borja Larrain, Mauricio Larrain and Mounu Prem

Journal of Corporate Finance, 2021, vol. 69, issue C

Abstract: This paper provides micro evidence of labor mobility inside business groups. We show that worker flows between firms in the same group are stronger than with unaffiliated firms. Moreover, the reallocation of top workers between group firms is more sensitive to international shocks. Top workers that move within the group in response to shocks reach higher positions and earn higher wages. We find suggestive evidence that productivity increases when firms receive same-group top workers. Our results are consistent with the hypothesis that, in response to changing opportunities, joint ownership eases the redeployment of workers endowed with general management skills.

Keywords: Internal labor markets; Business groups; Labor reallocation; Trade shocks (search for similar items in EconPapers)
JEL-codes: F16 G32 J60 (search for similar items in EconPapers)
Date: 2021
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Related works:
Working Paper: The Internal Labor Markets of Business Groups (2021) Downloads
Working Paper: The Internal Labor Markets of Business Groups (2021) Downloads
Working Paper: The Internal Labor Markets of Business Groups (2019) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:eee:corfin:v:69:y:2021:i:c:s0929119921001383

DOI: 10.1016/j.jcorpfin.2021.102017

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