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Title: The Effects of High-skilled Firm Entry on Incumbent Residents

Citation Type: Working Paper

Publication Year: 2021

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Abstract: Using 391 high-skilled firm entries in the U.S. from 1990–2010, we estimate the effects of the firm entry on incumbent residents’ consumption, finances, and mobility. We compare outcomes for residents living close to the entry location with those living far away while controlling for their proximity to potential high-skilled firm entry sites. We find high-skilled incumbents, especially homeowners, benefit. Low-skilled incumbents on average benefit less. For a representative firm entry with 1000 new employees entering a metropolitan area with a population of 1.1 million, the aggregate welfare benefit across all incumbents is an annual equivalent of $25 million. Lowskilled renters living within 10 minutes from the entry bear the largest costs.

Url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3982760

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Authors: Tan, Rose; Qian, Franklin

Series Title: Stanford Insitute for Economic Policy Research (SIEPR) Working Paper

Publication Number: 21-039

Institution: Stanford Insitute for Economic Policy Research (SIEPR)

Pages: 1-125

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Data Collections: IPUMS NHGIS

Topics: Labor Force and Occupational Structure

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