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Are Executives in Short Supply? Evidence from Deaths' Events

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Listed:
  • Julien Sauvagnat

    (Bocconi University)

  • Fabiano Schivardi

    (Luiss University)

Abstract

Using exhaustive administrative data on Italian social security records, we construct measures of local labor market tightness for executives that vary by industry and location. We then show that firm performance is negatively a ected by executives death, but only in thin local labor markets. Death events are followed by an increase in the separation rate for the other executives, in particular for those with a college degree. Consistent with the hypothesis that the drop in performance is due to executives' short supply, we find that after a death event executives wages in other firms increase, but only in thin markets.

Suggested Citation

  • Julien Sauvagnat & Fabiano Schivardi, 2020. "Are Executives in Short Supply? Evidence from Deaths' Events," Working Papers LuissLab 20154, Dipartimento di Economia e Finanza, LUISS Guido Carli.
    • Handle: RePEc:lui:lleewp:20154
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    1. A. Baltrunaite & S. Formai & A. Linarello & S. Mocetti, 2024. "Ownership, Governance, Management and Firm Performance: Evidence from Italian Firms," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 10(3), pages 993-1027, November.
    2. Audinga Baltrunaite & Egle Karmaziene, 2020. "Trainspotting: Board Appointments in Private Firms," Temi di discussione (Economic working papers) 1278, Bank of Italy, Economic Research and International Relations Area.

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    More about this item

    Keywords

    Executives supply; firm performance; local growth;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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