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

Author

Listed:
  • Lisa B. Kahn
  • Yang Chang

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.

Suggested Citation

  • Lisa B. Kahn & Yang Chang, 2026. "Race, Firm Size, and the School-to-Work Transition," AEA Papers and Proceedings, American Economic Association, vol. 116, pages 400-405, May.
    • Handle: RePEc:aea:apandp:v:116:y:2026:p:400-405
    DOI: 10.1257/pandp.20261095
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    More about this item

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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